United States-based Cancer Genetics has signed a contract with NovellusDx, a precision oncology company, it was reported yesterday.

According to the contract, NovellusDx will merge with a newly formed Israeli subsidiary of Cancer Genetics and shareholders of NovellusDx will receive stock equal to around 49% of the equity of Cancer Genetics on a fully diluted basis.

Cancer Genetics will be the surviving entity and expects to remain listed on the Nasdaq Stock Market.

This deal is intended to integrate Cancer Genetics' scale, expansive test portfolio and broad data set related to tumour biology, cultivated over more than a decade, with NovellusDx's proprietary technology and machine learning capabilities to form a leading, oncology-focused precision medicine company. The goal of the integrated company is to accelerate and improve therapeutic development, effectively matching patients to targeted therapies to improve treatment success rates for biopharma companies.