GeneDx has completed the acquisition of Fabric Genomics, a US-based company focused on AI-driven human genomic interpretation.
The two companies now aim to focus on the next generation of genomic medicine, facilitating decentralised testing with centralised intelligence.
Last month, GeneDx announced its plans to acquire Fabric Genomics, with an aggregate payment of up to $33m in cash at closure. The deal value could potentially go up to an aggregate of $51m after achieving specific milestones.
The exome and genome testing and rare disease data assets of GeneDx, combined with the AI interpretation services of Fabric Genomics will create a genomic diagnostic ecosystem.
GeneDx noted that the integrated model provides flexibility for healthcare providers and systems, offering a seamless workflow for centralised and decentralised genomic services.
This synergy is powered by GeneDx’s clinical expertise and interpretation technology of Fabric.
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By GlobalDataFabric Genomics will maintain its operational independence as GeneDx鈥檚 subsidiary, advancing its growth trajectory with commercial backing from its new parent company.
The acquisition unlocks several growth avenues for GeneDx, including expediting neonatal聽intensive care unit (NICU) genomic testing to swiftly diagnose critically ill newborns, positioning the company to support large-scale genomic newborn screening (gNBS) programmes worldwide.
Additionally, the acquisition will allow for models that are regulation-compliant for AI-powered interpretation services throughout various global regions.
It also taps into recurring revenue streams that are based on software via Fabric Genomics鈥� interpretation-as-a-service model.
Fenwick & West acted as the legal adviser for GeneDx during this acquisition. Meanwhile, TD Cowen provided exclusive financial advice to Fabric Genomics, with DLA Piper (US) offering legal counsel.
GeneDx CEO and president Katherine Stueland said: 鈥淗ealthcare is at an inflexion point where genomic insights must be integrated into standard care to improve outcomes and reduce costs.
鈥淲ith Fabric Genomics now part of GeneDx, we鈥檙e uniquely positioned to deliver earlier and more accurate diagnoses worldwide, from NICUs and pioneering newborn screening programmes to health systems across the globe.鈥�
