Castle Biosciences Adds Mental Health Testing Solutions Via AltheaDx Acquisition

Castle Biosciences Inc CSTL has agreed to acquire AltheaDx Inc, a commercial-stage molecular diagnostics company, for $140 million, including milestone payment.

• AltheaDx specializes in pharmacogenomics (PGx) testing services focused on mental health.
• IDgenetix is its PGx test for depression, anxiety, and other mental health conditions.
• Castle will pay $65.0 million in initial consideration, consisting of $32.5 million in cash and $32.5 million in Castle shares. 
• Further, up to $75.0 million in cash and common stock will be payable to achieve certain milestones based on 2022, 2023, and 2024 performance and expanded Medicare coverage for IDgenetix. 
• The transaction is expected to close in the second quarter of 2022.
• Upon closing the transaction, the executive management team and other AltheaDx staff are expected to stay with Castle. 
• AltheaDx's laboratory and operations are expected to remain in San Diego.
• Castle Biosciences held cash and equivalents of $330 million as of December 31, 2021.
• Price Action: CSTL shares closed at $45.99 on Monday.