GenMark Diagnostics, Inc. (NASDAQ:GNMK) rose Monday, as Roche Holding AG announced plans to acquire GenMark Diagnostics for $24.05 per share in cash, or about $1.8 billion, on a fully diluted basis.
The transaction is Roche’s largest since the Swiss drug maker bought Spark Therapeutics in 2019.GenMark investors will get $24.05 a share in cash, marking a 30% premium to Friday’s closing price. GenMark said it expects to report revenue of about $171M for 2020, representing an increase of approximately 95% over 2019.
GNMK’s last financial figures, announced late in February, showed Total revenue of $171.6 million, an increase of 95% over 2019; ePlex ® revenue was $152.6 million, an increase of 155% over 2019. Gross margin of 40%, compared to 32% in 2019.
Cash and investments were $128.2 million as of December 31, 2020. Delivered $6.1 million in positive cash flows from operating activities.
Fourth-quarter total revenue was $50.1 million, an increase of 84% over the fourth quarter of 2019. ePlex ® revenue was $45.4 million, an increase of 138% over the fourth quarter of 2019. Gross margin of 39%, compared to 34% in the fourth quarter of 2019.
The company also placed 70 net new ePlex analyzers in the fourth quarter of 2020, finishing the year with an installed base of 792 ePlex analyzers worldwide. ePlex installed base grew 50% year over year
Average annuity per analyzer of $220,000, compared to $148,000 in the fourth quarter of 2019. Increased manufacturing capacity by more than 75% versus prior year with the completion of the first of two new production lines during the quarter.
GNMK shares popped $5.35, or 28.9%, to $23.85.