Assurex Health to be Acquired by Myriad Genetics
Leader in Precision Medicine for Mental Health Treatment Decisions Sees Significant Strategic Benefits; Will Keep Headquarters in Mason, Ohio
MASON, Ohio, August 3, 2016 – Assurex Health, the world leader in genetic testing to guide behavioral health medication decisions, today announced it will become a wholly-owned subsidiary of Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in molecular diagnostics and personalized medicine, according to Virginia C. (Gina) Drosos, president and CEO of Assurex Health.
“We are excited to be joining the global leader and pioneer in personalized medicine,” said Drosos, who will continue to serve as president of Assurex Health. “Myriad has the reimbursement, regulatory and commercial expertise to help take our business to the next level and ensure that even more patients can benefit from better outcomes through our GeneSight tests.”
“Assurex Health brings to Myriad GeneSight®, one of the fastest growing new diagnostic tests in a multi-billion dollar global market,” said Mark C. Capone, president and CEO, Myriad Genetics. “Importantly, this acquisition provides a commercial channel into the neuroscience market, which we believe will be one of the highest growth areas for personalized medicine.”
Headquarters to Remain in Mason, Ohio
Assurex Health also said that its headquarters will remain in Mason, Ohio, building on the city’s innovative public-private partnership that allowed the company to flourish in the region. Assurex Health employs more than 450 people, including over 250 in Mason, a number that has more than doubled in the past three years.
Assurex Health was founded in 2006 with patented technology licensed from Cincinnati Children’s Hospital Medical Center, the world’s leading pediatric research center, and Mayo Clinic, which continue to be research collaborators. The company also received critical early support from the seed fund CincyTech and other seed-stage investors, as well as the City of Mason and the state of Ohio’s JobsOhio program.
“The collaboration between Cincinnati Children’s, Mayo Clinic and CincyTech was the catalyst for creating Assurex Health and provided the intellectual property that served as the foundation of the company and its products,” Drosos noted.
Access to top talent, venture funding, strong science partnerships with Cincinnati Children’s and leading Midwest universities, and a beneficial cost structure—including the affordable lifestyle and economic incentives that Mason and Ohio offer—are fundamental to the company’s commitment to the region.
“We are committed to the growing biohealth corridor here,” Drosos said. “It is an outstanding environment in which to continue to build our company and assist healthcare providers in helping people with mental illness achieve mental wellness.”
Will Realize Significant Benefits
Combining Assurex Health with Myriad Genetics offers the companies a number of compelling benefits, including continuing work to expand acceptance of GeneSight by commercial payors. The combination also integrates Myriad’s comprehensive primary care sales team with Assurex Health’s industry-leading psychiatric sales force.
Drosos said that the deal provides additional benefits.
“Myriad’s international operations can help to expand Assurex Health’s reach outside of the United States and Canada,” Drosos said. “Importantly, we will continue investing in our research and development programs to further demonstrate the clinical utility of the GeneSight test and expand its use in new indications.
“We believe that this step gives us the best opportunity to accelerate the achievement of our mission, which is to help patients with psychiatric disorders, chronic pain and other neurologic conditions achieve wellness. Together with Myriad, we can help more people get on a path to mental wellness.”
Assurex Health said that the agreement was for $225 million upfront with the potential for $185 million in additional performance-based milestones. Assurex Health was advised on the transaction by the banking teams of Goldman Sachs and Leerink Partners as well as legal counsel from Latham & Watkins and Thompson-Hine.
About Assurex Health
Assurex Health is an informatics-based, personalized medicine company providing treatment decision support to healthcare providers for behavioral health and chronic pain conditions. We help people achieve mental wellness with advanced CPGx®, a proprietary combinatorial pharmacogenomics technology providing individualized treatment support for neuropsychiatric conditions. Assurex Health is the only company in the category with multiple peer-reviewed, published studies that demonstrate the clinical validity and clinical utility of its test, GeneSight®, including its substantial healthcare cost savings benefit. The company has grown every quarter and has expanded internationally through a partnership with Canada’s Centre for Addiction and Mental Health (CAMH). For more on how Assurex Health is helping people gain mental wellness, visit www.AssurexHealth.com and www.genesight.com.
About Myriad Genetics
Myriad Genetics Inc. (NASDAQ: MYGN) is a leading personalized medicine company dedicated to being a trusted advisor transforming patient lives worldwide with pioneering molecular diagnostics. Myriad discovers and commercializes molecular diagnostic tests that: determine the risk of developing disease, accurately diagnose disease, assess the risk of disease progression, and guide treatment decisions across six major medical specialties where molecular diagnostics can significantly improve patient care and lower healthcare costs. Myriad is focused on three strategic imperatives: transitioning and expanding its hereditary cancer testing markets, diversifying its product portfolio through the introduction of new products and increasing the revenue contribution from international markets. For more information on how Myriad is making a difference, please visit the Company’s website: www.myriad.com.
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