Quest Diagnostics is hoping it’s found a winner in Haystack Oncology, with a $450 million bet on the cancer-focused blood test startup.
The clinical testing giant plans to acquire Baltimore-based Haystack for its technology to detect minimal residual disease by catching the early signs of a solid tumor’s recurrence by sifting out small pieces of cancer DNA floating in the bloodstream.
The deal includes $300 million in upfront cash, plus an additional $150 million should Haystack’s tests achieve certain performance milestones. Quest said it expects the deal to close by the end of June.
“Haystack’s liquid biopsy technology, combined with Quest’s strengths in screening, pathology and sequencing, will now position us to lead in the fast-growing MRD category,” Quest CEO Jim Davis said in the company’s announcement.