Biotechnology sector-related exchange traded funds were among the leaders on Monday after Invitae Corp. (NYSE: NVTA) announced a $1.4 billion deal for ArcherDX, potentially bolstering the genetic information company’s offering lineup and growth outlook.
Among the best performing non-leveraged ETFs of Monday, the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) advanced 6.8%, Global X Genomics & Biotechnology ETF (Nasdaq: GNOM) increased 3.4% and SPDR S&P Biotech ETF (XBI) increased 2.9%.
Meanwhile, Invitae Corp shares surged 44.5% on Monday. NVTA makes up 8.9% of ARKG, 3.0% of GNOM, and 1.7% of XBI.
Invitae’s agreement to acquire genomics analysis company ArcherDX is expected to create a hub for precision oncology, diagnostics, therapy optimization, and monitoring, according to RTTNews.
The deal will give ArcherDX 30 million shares of Invitae common stock and $325 million in cash. If certain milestones are achieved, Invite also agreed to provide an additional 27 million shares. The total transaction is valued at about $1.4 billion.
The combined company could transform care for cancer patients, accelerating adoption of genetics through the most comprehensive suite of products and services available, according to a press release. Integrating germline testing, tumor profiling, and liquid biopsy technologies and services in a single platform will enable precision approaches from diagnostic testing to therapy optimization and monitoring, expanding access to best-in-class personalized oncology.
“From the beginning, Invitae’s goal has been to aggregate the world’s genetic tests into a single platform in service of our mission to bring comprehensive genetic information into mainstream medicine. Today, we take another major step forward in that effort,” Sean George, Ph.D., Co-Founder and Chief Executive Officer of Invitae, said in a note.
“ArcherDX and Invitae share a foundational belief in the power of genomic information to impact care. We are thrilled to unite with Invitae to form the leading hub for precision oncology, diagnostics, therapy optimization and monitoring, with an opportunity to accelerate both patient care and shareholder value,” Jason Myers, Ph.D., chief executive officer and co-founder of ArcherDX, said in a note.
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