Quest Diagnostics, a provider of diagnostic information services, has acquired Haystack Oncology, an oncology company focused on minimal residual disease (MRD) testing.
Founded in 2021, Haystack has developed a circulating tumor DNA-based technology for MRD detection. MRD testing is a category of liquid biopsy tests that identify circulating tumor DNA in the bloodstream of patients following surgery and treatment for cancer. Following the close of the deal, Quest looks to adapt the MRD test developed at Haystack as the basis for new clinical lab services available beginning in 2024. Developmental efforts will initially focus on MRD tests for colorectal, breast and lung cancers.
“Haystack’s liquid biopsy technology, combined with Quest’s strengths in screening, pathology and sequencing, will now position us to lead in the fast-growing MRD category,” says Jim Davis, chairman, CEO and president, Quest Diagnostics. “Working with Haystack, we have an opportunity to broaden access to MRD insights and potentially improve favorable long-term outcomes from cancer.”
J.P. Morgan Securities LLC acted as financial advisor to Quest, and Weil, Gotshal & Manges LLP acted as Quest’s legal advisor. Goldman Sachs & Co. LLC acted as financial advisor to Haystack, and Goodwin Proctor LLP acted as Haystack’s legal advisor.