Castle Biosciences Inc (NASDAQ: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.
