I think this is positive for the digital pathology market in several ways. First, it brings the Genetix Group increasingly into the clinical space with their cell imaging and analysis technologies having largely been based with pharma and research in the past. Secondly, I think this acquisition helps to show increasing validation for digital pathology and the digital pathology marketplace. I also like the fact that European-based companies have an increasing footprint along with US and Japanese-based companies that offer digital pathology technologies for clinical use.
Genetix Group plc (“Genetix”) (AIM: GTX), the cell imaging and analysis group, today announces that it has signed a definitive agreement to acquire all of the issued share capital of SlidePath Limited (“SlidePath”), further strengthening its position in the fast growing digital pathology market.
The acquisition is in line with Genetix’ strategy to accelerate and strengthen its presence in the growing digital pathology market and is a natural progression following on from the 2006 acquisition of Applied Imaging. SlidePath’s competencies in cell imaging analysis software are aligned to Genetix’ core skills in imaging and image analysis which enables Genetix to build a stronger platform to offer a broader mix of products for the digital pathology market. SlidePath’s expertise in web enabled viewing, information management and computer aided image analysis solutions will enhance Genetix’ product offerings through added functionality in its current markets of drug discovery and diagnostics and by leveraging Genetix’ sales and customer support infrastructure worldwide and deep customer relationships with diagnostics and pharmaceutical companies to expand the reach for new markets and new customers for SlidePath products.
SlidePath was founded in 2004 by Dr Donal O’Shea and Dr Sean Costello. The company has 25 employees and more than 60 customers in 10 countries, including the UK, US, Ireland, Germany, France and Australia.
Over the two years ended 31 December 2008 SlidePath has grown its reported revenues at a compound annual growth rate of 61%. SlidePath has a strong product offering allowing the analysis, management and web enabled image viewing of tissue and cellular samples for the growing digital pathology market. Digital pathology is the computer enabled management and interpretation of pathology information generated from slides. The market has multiple applications, ranging from clinical laboratories, clinical trials, drug discovery and academia. Digital slides overcome problems associated with glass sides including damage and deterioration and allow samples to be viewed, archived and re-examined remotely.
The founders of SlidePath, the Chief Executive Officer, Dr Donal O’Shea, and Head of Customer Relations, Dr Sean Costello will remain with and continue to lead the business.
Commenting on the acquisition, Charles de Rohan, Chief Executive of Genetix said, “This transaction brings together two companies with highly complementary core skills that will greatly strengthen our competitive position in the growing digital pathology market. Combining Genetix’ global infrastructure with SlidePath’s leading-edge products and technologies will allow us to offer compelling new products and enhance our existing product ranges. We are impressed by the skill and expertise of SlidePath’s employees and believe that this investment will further solidify Genetix’ position in this exciting growth market as well as enhancing shareholder value.”
Dr Donal O’Shea, Chief Executive of SlidePath said, “We are excited to be joining forces with Genetix, a company which has an excellent track record in product innovation and has built a high quality customer base and global infrastructure. The combined company will have many synergistic opportunities, a stronger market position and capital structure to be able to execute on its strategic growth initiatives. We believe this is an excellent fit”
About Genetix Group plc
Headquartered in New Milton, UK, with offices in the UK, US, Germany and Japan, and quoted on the AIM (GTX: AIM), Genetix provides scientists and clinicians with unrivalled solutions for imaging and intelligent image analysis in the life science and diagnostic markets.
In life sciences, the company’s systems set industry standards for accurate selection of microbial colonies, and for screening and selection of mammalian secretory cell lines. Other systems evaluate the response of cells to potential therapeutic agents and quantify tissue biomarkers.
In diagnostics, Genetix holds a leading position in genetic testing with thousands of the company’s platforms used in laboratories worldwide.
Through its expertise in robotics, cell and molecular biology, image analysis and interpretation, supported by a strong IP portfolio, Genetix is committed to the continual development of innovative solutions.