Oncocyte Acquires Blood-Based Molecular Diagnostics Provider, Chronix Biomedical For Roughly $10 Million

Oncocyte Corporation (NYSE: OCX) has agreed to acquire Chronix Biomedical, a privately held molecular diagnostics company, developing blood tests for cancer treatment and organ transplants. This agreement supersedes the previous agreement announced in October 2020.
Under the agreement, Chronix's development and the business team will become part of the Oncocyte R&D team maintaining lab operations in Germany and lead Oncocyte's commercial efforts with DetermaRx and DetermaIO in Germany and other EU member countries.
Oncocyte intends to accelerate further development of the CNI test that measures the amount of that copy number variation present in blood that has been shed by dying tumor cells.
Oncocyte believes the addition of the CNI test will enable it to enter into blood-based immune-therapy monitoring. The test is expected to be launched in the second half of 2021, only-for research use.
Upon closing, Oncocyte will pay $2.675 million in cash, $1.5 million of Oncocyte shares, and assume liabilities not to exceed $5.5 million.
The agreement also provides for Oncocyte to pay a revenue share on the net collected revenues for certain tests and services for specific periods and to pay a combination of cash or Oncocyte common stock of up to $14 million if certain milestones are achieved.
The transaction is expected to complete by April 30.
Price Action: OCX shares are up by 0.20% at $5.10 on the last check Tuesday.