Agilent to Acquire Resolution Bioscience, Strengthening Leadership Position in Cancer Diagnostics

Rhea-AI Summary

Agilent Technologies Inc. (NYSE: A) has announced its definitive agreement to acquire Resolution Bioscience Inc. for $550 million in cash, with an additional $145 million based on performance milestones. This acquisition enhances Agilent’s capabilities in next-generation sequencing (NGS)-based precision oncology solutions, aiming to expand access to cancer diagnostics. Resolution Bioscience, known for its noninvasive liquid biopsy assay and FDA-designated HRD assay, reported revenues of approximately $35 million in 2020 and is projected to earn $50-55 million this year. The deal is expected to close in April.

Positive

• Acquisition strengthens Agilent's position in precision oncology, expanding NGS-based diagnostic capabilities.
• Resolution's HRD assay received Breakthrough Device Designation from the FDA, enhancing its market potential.
• Expected revenue growth with Resolution's projected earnings of $50-55 million this year.

Negative

• Acquisition expected to be slightly dilutive to Agilent’s non-GAAP EPS in fiscal 2021 and 2022.

Agilent Technologies Inc. (NYSE: A), today announced it has entered into a definitive agreement to acquire Resolution Bioscience Inc., a leader in the development and commercialization of next-generation sequencing (NGS)-based precision oncology solutions. The acquisition complements and expands Agilent’s capabilities in NGS-based cancer diagnostics and provides the company with innovative technology to further serve the needs of the fast-growing precision medicine market. Under the terms of the agreement, Agilent will pay $550 million in cash at closing and up to an additional $145 million based on achieving future performance milestones.

Resolution Bioscience’s noninvasive liquid biopsy assay platform supports both the biopharma services market and the clinical oncology diagnostic testing market and is enabled by its Clinical Laboratory Improvement Amendments (CLIA)-certified lab. The platform has been designed for both a centralized CLIA test service and a distributable kit format. In addition, the Resolution Bioscience homologous recombination deficiency (HRD) assay has received Breakthrough Device Designation from the U.S. Food and Drug Administration. The assay is performed on a standard blood sample and detects actionable mutations in genes for identifying cancer. Last year, Resolution Bioscience announced a commercial partnership with LabCorp to enable broad access to the Resolution ctDx Lung™ test that detects actionable mutations in genes associated with non-small cell lung cancer.

“We are extremely pleased to add Resolution Bioscience’s outstanding team and powerful technology to Agilent’s growing business in precision oncology solutions,” said Mike McMullen, Agilent president and CEO. “By adding Resolution Bioscience’s liquid biopsy-based diagnostic technologies to our portfolio, we are strengthening Agilent’s offering to our biopharma customers and boosting the growth of our diagnostics and genomics business. This also accelerates our strategy to broaden access to precision oncology testing for patients worldwide through distributed NGS-based diagnostic kits. We look forward to Resolution Bioscience joining with us to expand our work in the fight against cancer.”

“Agilent’s broad expertise, global regulatory and commercial infrastructure, extensive partnerships with biopharma companies, and decades-long leadership in precision medicine will enhance and accelerate our groundbreaking work,” said Mark Li, Resolution Bioscience president and CEO. “We are excited to further expand the use of NGS in precision oncology for clinical diagnostics as part of the Agilent team.”

Resolution Bioscience is based in Kirkland, Washington. The company had revenues of approximately $35 million in calendar year 2020 and is expected to generate $50 million to $55 million in revenue this year. The acquisition is expected to be slightly dilutive to Agilent’s non-GAAP earnings per share in fiscal 2021 and 2022, and improving in the following years.

The transaction is expected to close in April, subject to regulatory approvals and customary closing conditions.

About Agilent Technologies

Agilent Technologies Inc. (NYSE: A) is a global leader in the life-sciences, diagnostics, and applied-chemical markets, delivering insight and innovation toward improving the quality of life. Agilent instruments, software, services, solutions, and people provide trusted answers to customers' most challenging questions. The company generated revenue of $5.34 billion in fiscal year 2020 and employs 16,400 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, please subscribe to the Agilent Newsroom. Follow Agilent on { "@context": "https://schema.org", "@type": "FAQPage", "name": "Agilent to Acquire Resolution Bioscience, Strengthening Leadership Position in Cancer Diagnostics FAQs", "mainEntity": [ { "@type": "Question", "name": "What is the purpose of Agilent's acquisition of Resolution Bioscience?", "acceptedAnswer": { "@type": "Answer", "text": "The acquisition aims to enhance Agilent's capabilities in NGS-based precision oncology solutions." } }, { "@type": "Question", "name": "What are the financial details of Agilent's acquisition of Resolution Bioscience?", "acceptedAnswer": { "@type": "Answer", "text": "Agilent will pay $550 million in cash and up to $145 million based on future performance milestones." } }, { "@type": "Question", "name": "When is the acquisition of Resolution Bioscience expected to close?", "acceptedAnswer": { "@type": "Answer", "text": "The acquisition is anticipated to close in April, pending regulatory approvals." } }, { "@type": "Question", "name": "How will Resolution Bioscience's technology benefit Agilent?", "acceptedAnswer": { "@type": "Answer", "text": "It will strengthen Agilent's offerings to biopharma customers and expand access to precision oncology testing." } }, { "@type": "Question", "name": "What impact will the acquisition have on Agilent's earnings?", "acceptedAnswer": { "@type": "Answer", "text": "The acquisition is expected to be slightly dilutive to Agilent’s non-GAAP earnings per share in fiscal 2021 and 2022." } } ] }

FAQ

What is the purpose of Agilent's acquisition of Resolution Bioscience?

The acquisition aims to enhance Agilent's capabilities in NGS-based precision oncology solutions.

What are the financial details of Agilent's acquisition of Resolution Bioscience?

Agilent will pay $550 million in cash and up to $145 million based on future performance milestones.

When is the acquisition of Resolution Bioscience expected to close?

The acquisition is anticipated to close in April, pending regulatory approvals.

How will Resolution Bioscience's technology benefit Agilent?

It will strengthen Agilent's offerings to biopharma customers and expand access to precision oncology testing.

What impact will the acquisition have on Agilent's earnings?

The acquisition is expected to be slightly dilutive to Agilent’s non-GAAP earnings per share in fiscal 2021 and 2022.