Progenity Inc. (NASDAQ: PROG) has announced the successful closing of the business divesture of Avero Diagnostics via an asset sale to Northwest Pathology.
Progenity closes divesture of Avero Diagnostics
The transaction adds cash to the company’s balance sheet and also reduces operating expenses. The acquisition price was $10.9 million, and the deal is subject to the purchase agreement’s standard adjustments.
The company’s Chief Financial Officer Eric d’Esparbes said, “The sale of our Avero Diagnostics affiliate results in a further annual operating expense reduction of approximately $28 million, bringing the total reduction in annual operating expenses to approximately $145 million compared to the second quarter. This reduction, along with capital raised, should extend our cash runway beyond the end of 2022 and reduce our dependency on the capital markets.
Chief Executive Officer Adi Mohanty stated, “This is one of the final steps in our strategic plan to materially reduce our cash burn. Completing this transaction is important to us as we focus on delivering on our biotherapeutics pipeline. We are pleased that Northwest Pathology will be retaining more than 90% of Avero employees, and we look forward to a smooth transition for the business.”
Progenity receives new patent on molecule detection platform
Recently the company announced a new patent connected to the single-detection molecule platform the company is currently developing. The USPTO issued Patent No. 11,186,863 entitled “Methods, Systems, and Compositions for Counting Nucleic Acid Molecules.” Methods for capturing, amplifying, and single imaging copies of target nucleic acid molecules are covered by the issued claims.
General Manager Diagnostics Matthew Cooper said, “This patent covers critical methods for counting target molecules, obviating the need for sequencing. Our Single-Molecule Detection Platform is designed to enable tests such as noninvasive prenatal testing (NIPT) or liquid biopsy for cancer to be performed without the need for costly, complex sequencing, which would greatly reduce cost and simplify operational implementation. The platform also has potential applications beyond nucleic acids, such as proteins. As Progenity migrates away from the commercial diagnostics business, we are actively seeking partners to further develop this promising asset.”