Basel, Switzerland-based Roche is set to purchase GenMark at $24.05 per share in an all-cash transaction, totaling approximately $1.8 billion on a fully diluted basis. That represents a premium of approximately 43% to GenMark’s unaffected closing share price on Feb. 10, 2021, the final trading day before a media report speculated over a potential sale, according to a news release.
Under the agreement, Roche will commence a tender offer to acquire all outstanding shares of GenMark’s common stock and GenMark will file a recommendation statement to represent its board’s unanimous recommendation that GenMark stockholders tender their shares to Roche.
Once Roche completes the acquisition, GenMark’s principal operations will continue at its current location in Carlsbad, Calif.
GenMark develops a syndromic panel testing portfolio that Roche believes will complement its current molecular diagnostics portfolio. The ePlex system made by GenMark drives efficiency in the laboratory through a streamlined order-to-reporting workflow, enabling rapid diagnoses.
The respiratory pathogen panels developed by GenMark identify common viral and bacterial organisms associated with upper respiratory infection, including SARS-CoV-2, adding to Roche’s COVID-19 diagnostics portfolio.
“Acquiring GenMark Diagnostics will broaden our molecular diagnostics portfolio to include solutions that can provide lifesaving information quickly to patients and their healthcare providers in the fight against infectious diseases,” Roche Diagnostics CEO Thomas Schinecker said in the release. “Their proven expertise in syndromic panel testing provides faster targeted therapeutic intervention, resulting in improved patient outcomes and reduced hospital stays, and will contribute to Roche’s commitment to helping control infectious diseases and antibiotic resistance. The rapid identification of bloodstream infections and the detection of antimicrobial resistance genes are more essential than ever for hospitals and their patients.”
“As a part of Roche, we can accelerate our mission to enable rapid diagnosis of infectious disease to improve patient outcomes. Together with Roche’s diagnostics healthcare solutions, we will be able to provide a full suite of molecular diagnostic solutions to customers around the world,” added GenMark CEO Scott Mendel. “We are thrilled to become a part of Roche and are confident that this is the right path forward for GenMark and our customers.”