“Spatial biology” contractor Flagship Biosciences has acquired Interpace Biosciences’ cell biology and molecular pathology services unit, Interpace Pharma Solutions.
The acquisition – financial terms of which were not disclosed – has added biomarker analysis, flow cytometry, cytogenetics as well as genomics and bioinformatics solutions to Flagship’s services offering according to CEO, Trevor Johnson.
“By combining these organizations, we create a single-source provider offering a larger range of biomarker and analytics services while maintaining and expanding the proven expertise of each laboratory.
“This will allow our customers to gain deeper insights into their clinical projects through multiple biomarker testing paradigms with cohesive data and analytical capabilities, managed in a simplified project workflow.”
The deal also adds a research laboratory in Research Triangle Park, North Carolina to Broomfield, Colorado-based Flagship’s network.
The acquisition follows hot on the heels of a growth equity investment in Flagship by backers Ampersand Capital Partners, BroadOak Capital Partners, and Research Corporation Technologies.
Interpace Biosciences – which is also backed by Ampersand – said the proceeds would provide working capital for ongoing operations and support investments to help drive the growth of its molecular diagnostics business.
CEO Thomas Burnell said “With the completion of the transaction, we expect the Company’s operating cash flow to improve by nearly $5 million annually.
He added that “we believe that eliminating the negative cash flow burden of the Pharma Services business will allow the Company and management to focus time and resources on product expansion, advancing the clinical utility of existing and new products, additional revenue growth through increased client acquisition, and reimbursement increases as a result of contract and billing improvement, leading to substantially improved margins.”
AI based imaging
Flagship was set up in 2009 as a “tissue analysis services company” for pharmaceutical companies working on clinical trials or companies developing diagnostic products.
The firm’s core technology is a patented artificial intelligence-based image analysis system that – it claims – improves the accuracy of tissue pathology because it is able to track a broader range of biomarkers than traditional histology-based methods.
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