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Part of Company’s Site Consolidation and Cost Savings Measures
Parsippany, NJ, March 17, 2021 (GLOBE NEWSWIRE) -- Interpace Biosciences, Inc. (OTC: IDXG) announced today that it has entered into a definitive agreement to sell its New Haven CT CLIA certified, CAP accredited laboratory to DiamiR Biosciences, Corp. (DiamiR). This sale is in line with previously announced restructuring and cost reduction initiatives announced by Interpace. Under this agreement, DiamiR will provide overflow lab testing in support of the Company’s molecular thyroid testing products at its main laboratory in Pittsburgh, PA. DiamiR will also support specific Interpace assay development and validation services on behalf of the Company for the next three quarters. Subject to specific terms and conditions of the agreement being met, it is anticipated that the transaction will close by the end of April 2021.
Financial terms of this transaction have not been announced publicly.
According to Tom Burnell, President & CEO of Interpace, “The strategic sale of this lab is a step forward towards our stated goal of achieving EBITDA and cash flow break even in 2021.” He continued, “I am confident that under DiamiR’s leadership, the New Haven Laboratory will be a strong strategic partner that will continue to provide quality services to Interpace while also helping to enhance the depth and breadth of our diagnostic services.”
DiamiR is a privately held molecular diagnostics company focused on the development and commercialization of blood-based solutions for early detection and monitoring of brain health and other indications. DiamiR’s innovative technology is based on targeted quantitative analysis of brain-enriched and inflammation-associated microRNA biomarkers in blood plasma for screening, early and differential diagnosis, enrollment of better defined participants into clinical trials, as well as disease progression and treatment monitoring. Its lead pipeline product, CogniMIR™, is in late stage development as CLIA-compliant test for the early detection and prediction of progression of mild cognitive impairment and Alzheimer’s disease in the context of clinical studies. More information can be found on the company’s website at www.diamirbio.com.
About Interpace Biosciences, Inc.
Interpace Biosciences, Inc. is a leader in enabling personalized medicine, offering specialized services along the therapeutic value chain from early diagnosis and prognostic planning to targeted therapeutic applications.
Interpace Diagnostics is a fully integrated commercial and bioinformatics business unit that provides clinically useful molecular diagnostic tests, bioinformatics and pathology services for evaluating risk of cancer by leveraging the latest technology in personalized medicine for improved patient diagnosis and management. Interpace has four commercialized molecular tests - PancraGEN® for the diagnosis and prognosis of pancreatic cancer from pancreatic cysts; ThyGeNEXT® for the diagnosis of thyroid cancer from thyroid nodules utilizing a next generation sequencing assay; ThyraMIR® for the diagnosis of thyroid cancer from thyroid nodules utilizing a proprietary gene expression assay; and RespriDX® that differentiates lung cancer of primary vs. metastatic origin – and one test in a clinical evaluation process (CEP), BarreGEN® for Barrett’s Esophagus.
Interpace’s Biopharma provides pharmacogenomics testing, genotyping, biorepository and other customized services to the pharmaceutical and biotech industries. The Biopharma business also advances personalized medicine by partnering with pharmaceutical, academic, and technology leaders to effectively integrate pharmacogenomics into their drug development and clinical trial programs with the goals of delivering safer, more effective drugs to market more quickly, and improving patient care.
For more information, please visit Interpace Biosciences’ website at www.interpace.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, relating to the Company’s future financial and operating performance. The Company has attempted to identify forward looking statements by terminology including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. These statements also involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from those expressed or implied by any forward-looking statements including, but not limited to, the Company’s ability to successfully qualify maintain the trading of its common stock on the OTCQX® Best Market, the Company’s ability to achieve projected cost savings and to successfully enact corporate reprioritization measures, the adverse impact of the COVID-19 pandemic on the Company’s operations and revenues, the substantial doubt about the Company’s ability to continue as a going concern, the Company’s history of operating losses, the Company’s ability to adequately finance its business, the Company’s ability to repay its $5M secured bridge loan, the Company’s dependence on sales and reimbursements from its clinical services, the Company’s ability to retain or secure reimbursement including its reliance on third parties to process and transmit claims to payers and the adverse impact of any delay, data loss, or other disruption in processing or transmitting such claims, the Company’s revenue recognition being based in part on estimates for future collections which estimates may prove to be incorrect, and the Company’s ability to remediate material weaknesses in internal controls. Additionally, all forward-looking statements are subject to the “Risk Factors” detailed from time to time in the Company’s most recent Annual Report on Form 10-K filed on April 22, 2020, as amended on May 29, 2020 and January 19, 2021, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q and amendments thereto. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Joseph Green/Megan Paul