Exact Sciences is set to acquire Johns Hopkins spinout Thrive Earlier Detection for up to $2.15bn in cash and stock, including $1.7bn upfront.
Thrive Earlier Detection, a US-based cancer screening technology spinout of Johns Hopkins University, yesterday agreed to an acquisition by molecular diagnostics company Exact Sciences, one of its existing backers, for up to $2.15bn.
The transaction consists of cash and stock, and Exact Sciences will pay $1.7bn upon the deal’s closure. The $1.7bn upfront payment will be made up of 65% of stock and 35% of cash, while the remaining $450m will be subject to milestones.
The purchase remains subject to regulatory approval and customary closing conditions. It is anticipated to conclude in the first quarter of 2021.
Founded in May 2019, Thrive Earlier Detection is working on a blood test called CancerSeek that can be integrated into routine medical care and detect multiple forms of cancer at an early stage.
Exact Sciences will continue to drive the development of CancerSeek. The company has concurrently acquired Base Genomics, an epigenetics spinout of Ludwig Cancer Research and University of Oxford, for $410m to further double down on its cancer diagnostics capabilities.
David Daly, chief executive of Thrive, said: “Thrive is driven by the knowledge that if cancer is caught early enough, it can be more effectively treated or even cured, and every patient deserves a chance for a better outcome.
“Our team has made significant progress toward our mission and we are eager to collaborate with and benefit from Exact Sciences’ expertise, and believe that together we will enable broader, quicker adoption of our test.
“With the support of our ongoing partnership with Johns Hopkins University, we are energised to contribute meaningfully to our shared mission of advancing the fight against cancer and providing life-changing answers to patients in need.”
Thrive raised $257m in a series B round co-led by Casdin Capital and Section 32 in July 2020.
The round also featured Bain Capital Life Sciences, Brown Advisory, Driehaus Capital Management, Intermountain Ventures, Janus Henderson Investors, Lux Capital, Moore Strategic Ventures, Perceptive Advisors, Rock Spring Capital, Sands Capital and undisclosed investors including clients advised by T Rowe Price Associates.
Third Rock Ventures, which incubated Thrive, led a $110m series A round in May 2019, when BlueCross BlueShield Venture Partners – the corporate venturing representative of 33 health insurers – and Exact Sciences also invested.
Section 32, Casdin Capital, Biomatics Capital, Invus, Cowin Venture, Camden Partners and Gamma 3 also committed series A financing, as did undisclosed participants.
