Genuity Science, the DNA analysis firm previously known as WuXi NextCode and Genomics Medicine Ireland, has been bought by New York headquartered company HiberCell.
No value is being put publicly on the all-stock deal, but under the terms HiberCell will end up with approximately $100 million in cash, as well as Genuity's existing partnership agreements with Ionis and AbbVie.
"It is expected that future earnouts of these partnerships will support HiberCell’s growth as a clinical stage biotechnology company," HiberCell said in a statement.
Two subsidiaries of Genuity, Genuity Science (Iceland) ehf and Genuity Sciences (Ireland) Limited, will also become wholly owned subsidiaries of HiberCell.
Founded in Dublin in 2015, Genomics Medicine Ireland (GMI) was taken over three years later by Boston based WuXi NextCode as part of a €350m deal that also saw the Irish state backed Ireland Strategic Investment Fund inject funding into GMI.
WuXi NextCode was later renamed Genuity Science as part of a rebranding exercise which also saw Genomics Medicine Ireland change its name.
Now headquartered in Boston, but with significant operations still in Dublin, Genuity Science is engaged in a project to map the genetic blueprint of 400,000 volunteers in Ireland in an attempt to search for better diagnostics and treatments for a range of illnesses.
The plan attracted the attention of the Data Protection Commission (DPC) last year, which carried out a supervision exercise with Genuity Science (Ireland) Ltd to review the company’s data protection compliance measures and where necessary to seek the implementation of remedial action.
In its 2020 annual report, the DPC said it would continue this engagement this year, seeking the implementation of the recommendations it put forward in its initial phase.
HiberCell, a clinical stage biotech company developing therapeutics to treat cancer relapse and metastasis, said the deal with Genuity would strengthen its balance sheet, accelerate its clinical programs and expand its pre-clinical pipeline.
It said the combined company will strategically apply artificial intelligence and machine learning to accelerate and advance fast its pipeline.
"Genuity's hybrid AI and ML platform, which has successfully identified and validated novel molecular pathways in disease initiation and progression, is well positioned to further our understanding of the stress phenotype and its role in cancer progression," said Alan Rigby, Ph.D., Co-Founder and Chief Executive Officer of HiberCell.
"We believe pairing HiberCell’s success in advancing differentiated oncology medicines into the clinic with Genuity’s advanced technologies in genomic research and one-of-a-kind AI/ML platform will break new ground for what is possible in cancer drug discovery," said Hannes Smarason, current CEO and Co-Founder of Genuity Science.
A spokesperson for the Ireland Strategic Investment Fund, which has invested a total of €66m in Genuity Science, said the fund will become a shareholder in HiberCell following the deal.
They said Genuity Science had faced significant challenges in the last few years brought about by rising trade tensions between China and the US which forced the separation of the Chinese operations, as well as the Covid-19 pandemic.
"This acquisition represents the best opportunity to maximise value for the company in the future and to maintain its Irish operation," the spokesperson said.
"We do not disclose the value of private investments as this information is commercially sensitive. However, the company's valuation has been negatively impacted by the global pandemic and its exposure to geopolitical events."
