Transformative, predictive cancer diagnostics technology company, Rhythm Biosciences (ASX: RHY) has entered into an Asset Sale Agreement (ASA) with Genetic Technologies (GTG) for the acquisition of select assets related to the Genetype business.
Background
Rhythm is committed to accelerating the delivery of the company’s core strategy, i.e., the delivery of high-quality clinical products and services designed to detect cancer early, through focused internal product development and strategic business partnering and M&A opportunities. As such, the Company has assessed several potential targets and is announcing the progress of a transaction with the lead opportunity.
Transaction Details
The company has entered a binding ASA to acquire the Genetype Business.
Rhythm has agreed to pay the GTG Administrators a cash purchase price of approximately $0.625m which is inclusive of the Company agreeing to pay select trade creditors and assuming the statutory employee entitlements for transferring employees in Australia. The acquisition will be funded from existing cash reserves arising from previous Research and Development Tax Incentive payments.
The transaction is expected to complete on 23 December 2024 subject to satisfying conditions precedent relating to the release of securities from the Genetype assets being acquired and the transferring employees accepting their offers of employment.
The Genetype business is a world leader in genetic-integrated risk assessment that offers population level predictive risk testing for a range of cancers and other serious and common diseases.
Genetype’s ability to quantify risk of disease using polygenic risk scores and clinical factors fully supports our goal of detecting disease earlier in a uniquely personal manner.
Rhythm’s emerging product portfolio of blood-based clinical diagnostics is a natural support for individuals identified as higher risk of disease than average. The combination of a proteomic and genomic product platform is a powerful synergy for the new combined organisation.
