Ampersand Completes Majority Investment in Leading Specialty Oncology Laboratory
Genoptix Investment Builds on Ampersand’s Lab Services ExperienceWellesley, MA, March 7, 2017. Ampersand Capital Partners, together with 1315 Capital and a management team led by Joseph M. Limber, has completed the acquisition of Genoptix, Inc. from Novartis. Headquartered in Carlsbad, California, Genoptix is one of the largest hematopathology testing laboratories in the U.S., providing thousands of oncologists and pathologists across the United States with comprehensive testing solutions in hematology and solid tumor molecular profiling.
The Genoptix investment reflects several elements of Ampersand’s investment strategy:
Ampersand partners Herb Hooper and Eric Lev will serve on the Genoptix Board. Herb Hooper, Managing Partner of Ampersand, commented: “Genoptix is an excellent fit with Ampersand’s lab services strategy, in which we target market leading laboratories in growing, specialty segments. The U.S. market for cancer testing is poised for long-term growth driven by an aging population and newly discovered genetic links to cancer. We believe Genoptix is well positioned to participate in this growth as a leader in the leukemia and lymphoma testing segments.”
Ampersand partner Eric Lev added: “While laboratory testing represents only 2-3% of U.S. healthcare spending, the results of lab tests influence a majority of treatment decisions made by physicians. Genoptix has built a reputation for providing innovative tests that can improve patient care in a critical segment of laboratory testing.”
Incoming Genoptix CEO, Joe Limber, added: “I am excited to partner with Ampersand and 1315 Capital on this opportunity. Having enjoyed prior success with the principals of both firms, I’m confident we will build upon the highly respected franchise that Genoptix has established over the years in cancer diagnostics.”
The Genoptix investment reflects several elements of Ampersand’s investment strategy:
- Leveraging domain expertise in core sectors: Ampersand has a proven track record in the laboratory services market, with prior investments including: Viracor-IBT, a market leader in monitoring the infection and immune status of transplant patients; Bako Pathology, a premier provider of podiatric pathology services, and Signature Genomic Labs, which pioneered microarray-based molecular testing for cytogenetics.
- Carve-out transactions: Genoptix is Ampersand’s fifth carve-out transaction in the last five years. Ampersand believes that value can be unlocked by creating more focused organizations through carve-out transactions.
- Partnering with management: Incoming Genoptix CEO Joseph Limber previously served as the CEO of a successful Ampersand portfolio company, and more recently as CEO of Prometheus Laboratories, a highly successful diagnostics and pharmaceutical in-licensing company focused on gastroenterology and oncology.
- Adding value through Operating Partners: Ampersand Operating Partners Larry McCarthy, PhD and Frank Witney, PhD will both serve on the Genoptix Board of Directors. Dr. McCarthy has a long and successful track record of building market leading diagnostic businesses, including as Chairman of Focus Diagnostics (sold to Quest), ViraCor-IBT Labs (sold to Eurofins) and Bako Pathology (sold to a private equity sponsor). Dr. Witney is a highly accomplished executive in the laboratory tools market, having served as CEO of Affymetrix (sold to ThermoFisher) and Dionex (sold to ThermoFisher).
Ampersand partners Herb Hooper and Eric Lev will serve on the Genoptix Board. Herb Hooper, Managing Partner of Ampersand, commented: “Genoptix is an excellent fit with Ampersand’s lab services strategy, in which we target market leading laboratories in growing, specialty segments. The U.S. market for cancer testing is poised for long-term growth driven by an aging population and newly discovered genetic links to cancer. We believe Genoptix is well positioned to participate in this growth as a leader in the leukemia and lymphoma testing segments.”
Ampersand partner Eric Lev added: “While laboratory testing represents only 2-3% of U.S. healthcare spending, the results of lab tests influence a majority of treatment decisions made by physicians. Genoptix has built a reputation for providing innovative tests that can improve patient care in a critical segment of laboratory testing.”
Incoming Genoptix CEO, Joe Limber, added: “I am excited to partner with Ampersand and 1315 Capital on this opportunity. Having enjoyed prior success with the principals of both firms, I’m confident we will build upon the highly respected franchise that Genoptix has established over the years in cancer diagnostics.”