Cancer Genetics’ (NASDAQ:CGIX) news of a merger has CGIX stock skyrocketing on Monday morning. This entails the drug company acquiring StemoniX, a drug-development firm that focuses on creating “high-throughput disease-specific human organoid platforms integrated with leading-edge data science technologies.”
With the merger, both companies can now collaborate on drug discovery and development for two major areas: advanced animal models and relevant human high-throughput organoid platforms. In turn, the goal is to lower the risk and accelerate the development of preclinical and clinical drug pipelines — both within the company, and for their biopharmacy partners.
Jay Roberts, chief executive officer of Cancer Genetics, has this to say about the CGIX stock news:
“The process of discovering and developing a new drug candidate takes years and comes with a price tag of hundreds of millions — or even billions — of dollars. However, we are at unique time in the drug discovery industry as the convergence of technological innovations in both biology and software will transform conventional workflows in time and accuracy.
To convert the time-consuming and labor-intensive process of developing a drug for market, we now look to supplement traditional discovery and drug approval mechanisms to include humanized cell-based assays with artificial intelligence (AI) along with our core vivoPharm business. Given that our strategy and approach are strongly aligned with those of StemoniX, we are pleased to have moved forward with this proposed transaction.”
Under the terms of the agreement, StemoniX will keep its name moving forward and just be a subsidiary of Cancer Genetics.
With the news, CGIX stock was up 175% as of Monday morning.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.
