Fast-growing startup, Assurex Health, sold to Utah-based Myriad Genetics Inc.

Deal worth up to $410 million
Posted at 5:22 PM, Aug 03, 2016
and last updated 2016-08-04 12:53:02-04

CINCINNATI -- A Utah company has acquired one of the region's most successful startups, Mason-based Assurex Health, in a deal worth up to $410 million.

Myriad Genetics Inc., based in Salt Lake City, will pay at least $225 million for the fast-growing company that developed a genetic test to help doctors identify the best medications to treat patients suffering from depression. Another $185 million in payments are possible, if performance milestones are met.

For Assurex Health, the deal means access to a sales and distribution network that can expand the use of the company’s GeneSight test to privately-funded health care plans and doctors outside the U.S.

MORE: $225 million deal could bring more capital, credibility to Cincy startup scene

“Myriad has the reimbursement, regulatory and commercial expertise to help take our business to the next level,” said Virginia Drosos, president and CEO of Assurex Health.

“We believe that this step gives us the best opportunity to accelerate the achievement of our mission, which is to help patients with psychiatric disorders, chronic pain and other neurologic conditions achieve wellness,” she added. “Together with Myriad, we can help more people get on a path to mental wellness.”

For Myriad Genetics, the deal delivers “one of the fastest growing new tests in a multi-billion dollar global market,” said Mark C. Capone, president and CEO. “Importantly, this acquisition provides a commercial channel into the neuroscience market, which we believe will be one of the highest growth areas for personalized medicine.”

The transaction is a big win for the Cincinnati startup community, since Assurex Health was built from technology licensed by Children’s Hospital Medical Center and its early funding came from CincyTech and other local seed-stage investors.

Drosos will continue with the company as president of the company, with 450 employees, including 250 in Mason.

“We are committed to the growing biohealth corridor here,” Drosos said. “It is an outstanding environment in which to continue to build our company and assist healthcare providers in helping people with mental illness achieve mental wellness.”