The acquisition expands the oncology diagnostic product holdings of Interpace Diagnostics, a subsidiary of PDI, according to the report. RedPath markets a molecular diagnostics test for pancreatic cancer risk that currently generates $10 million in annual revenue.
To purchase RedPath, PDI secured a six-year, $20 million loan from SWK Holdings.
PDI acquired all outstanding shares of the company and paid $12 million upfront. It will also pay future milestone-based payments, future revenue-based payments and an $11 million noninterest bearing four-year subordinated note to RedPath shareholders. PDI will also issue up to 1 million shares upon introduction of a test for Barrett’s esophagus, which is currently under development.
The company will continue to provide its services as a part of Interpace Diagnostics.
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