SWK Holdings Term Loan Supports PDI Buy
PDI, a healthcare commercialization company, announced the acquisition of RedPath Integrated Pathology, a molecular diagnostics company. The acquisition immediately expands the oncology diagnostic product portfolio for subsidiary Interpace Diagnostics with a test generating approximately $10 million in revenue that is marketed for determining pancreatic cancer risk from pancreatic cysts as well as tests in late-stage development for assessing cancer risk for Barrett’s esophagus and in the biliary tract.
In connection with the acquisition of RedPath, PDI secured a $20 million, six-year term loan from SWK Holdings Corporation.
The transaction encompasses all RedPath Integrated Pathology assets.As part of Interpace Diagnostics, the laboratory will continue to provide testing services in its CLIA-certified, CAP-accredited facility.
PDI acquired all of the outstanding shares of RedPath.
Terms of the deal include a $12 million upfront payment, future milestone-based payments, future revenue-based payments, an $11 million non-interest bearing, four-year subordinated note to the shareholders of RedPath, and up to one million PDI shares issuable upon the successful introduction of the Barrett’s esophagus test.
“PDI represents an important investment opportunity for SWK. We are very excited to support the company’s efforts to build the Interpace Diagnostics business with a flexible, non-dilutive financing solution,” said Brett Pope, CEO of SWK.
“The PathFinderTG testing platform has tremendous untapped potential to deliver a much-needed improvement in diagnostic options for oncologists, gastroenterologists, pathologists and patients – particularly in pancreatic cancer and other gastrointestinal-related cancers,” said Nancy Lurker, CEO, PDI. “This acquisition further demonstrates PDI’s commitment to building a growth-oriented portfolio of proprietary molecular diagnostics that serves unmet medical needs in the oncology space.”
“PDI’s deep go-to market expertise and commercialization infrastructure can deliver the resources needed for the development and promotion of this innovative technology,” said Dennis Smith, MD, president and CEO, RedPath Integrated Pathology. “Becoming part of Interpace Diagnostics will enable the realization of PathFinderTG’s full potential while complementing the company’s growing molecular diagnostics capabilities.”
PDI is a healthcare commercialization company providing go-to-market strategy and execution to established and emerging healthcare companies through its three core business units.