Exact Sciences gets $24.5 million in Genzyme deal
Colon cancer test developer Exact Sciences Corp. of Marlborough sold some of its intellectual property and 3 million shares of stock to Cambridge biotechnology company Genzyme Corp. for $24.5 million in cash.
Sequenom Inc., which offered to buy Exact Sciences earlier this month, dropped its bid in response.
Late yesterday, Exact Sciences said Genzyme will buy intellectual property related to prenatal and reproductive health. Exact Sciences will receive sublicense income if Genzyme develops products from the intellectual property that is not in the fields of prenatal or reproductive health.
Exact Sciences also said in a press release: "In conjunction with the completion of this transaction, Jeffrey R. Luber, Exact's president and chief executive officer, has announced his intention to work with the board to find a new CEO with product and commercial development expertise directly aligned with Exact’s next phase of growth. To that end, the board has set up a search committee to initiate the search process for a new chief executive officer. Mr. Luber intends to remain president and CEO until the appointment of his replacement."
As for the Genzyme transaction, Exact Sciences said that is keeping the licensing rights to its colorectal cancer screening and stool-based DNA testing technology, which has been its primary focus.
Genzyme will own about 11 percent of the company. Exact Sciences had 27.3 million shares as of Nov. 3, 2008.
Sequenom, a genetic analysis instrument maker based in San Diego, tried to buy Exact Sciences earlier in January. It offered $41 million, or $1.50 per share. Exact Sciences rejected that bid, and said it was pursuing a more valuable option.
To reac the Exact Sciences press release, please click here. (AP)