Dive Brief:
- Strand Life Sciences, which operates a genetic diagnostics lab in Aurora, Colorado plans to merge with Venaxis, a developer of an acute appendicitis test, based in Castle Rock, Colorado.
- Venaxis will buy Strand over several months, with Strand shareholders ultimately owning 68% of the combined business, and Venaxis shareholders owning 32% if they approve the merger.
- Strand Life Science's executive chairman and co-founder Vijay Chandru will serve as executive chairman of the new company's board, composed of four Strand directors and three Venaxis directors. Venaxis' CEO and president Steve Lundy will be CEO of the combined business.
Dive Insight:
Strand Life Sciences, based in India, opened its genetic testing lab last year in Aurora. The company's StrandAdvantage technology diagnoses a patient's cancer and identifies treatment based on the patient's genetic profile and then locates eligible clinical trials for that patient.
The new combined business will initially focus on the StrandAdvantage tests and then expand further with other technology. Venaxis has been developing a technology, Appy1, to help emergency room physicians quickly diagnose acute appendicitis, but has been struggling with obtaining FDA approval. It will continue to search for a partner to bring Appy1 to market.
Colorado has seen a big increase in the biosciences, with the medical device and equipment sector showing the largest growth at 16% employment increase since 2001, according to BIOtechNOW.