Cancer Genetics Inc. (Nasdaq: CGIX) is buying BioServe India for $1.9 million.
The acquisition is meant to help the Rutherford, N.J.-based buyer capitalize on the growing clinical diagnostics market in the India and Asian markets.
BioServe, headquartered in Hyderabad, India, provides genomics services and manufactures molecular kits for the research and clinical markets. The company's kits and services aim to help researchers identify genetic markets, validate drug tests and correlate clinical and molecular data to develop new medications. The company is backed by Ventureeast, an Indian venture capital firm that focuses on the technology, life sciences and clean environment markets.
Cancer Genetics is a DNA-based diagnostics company that focuses on developing genomic-based oncology tests.
After the deal closes, BioServe will be a subsidiary of Cancer Genetics, and will be renamed Cancer Genetics India Pvt. Ltd. The buyer expects the deal to create cost efficiencies as it scales up operations for genetic analysis, bioinformatics and manufacturing to meet heightened demand across the globe.
Other health care companies have also made acquisitions in the cancer space. In March, Varian Medical Systems Inc.'s (NYSE: VAR) deal to buy software for cancer clinics from Velocity Medical Solutions LLC, and Agenus Inc.'s (Nasdaq: AGEN) deal for 4-Antibody AG, a company that uses technology to try to regulate immune response to cancers and other diseases.