Device/Diagnostics Quarterly Dealmaking Statistics, Q2 2018
A look at the financing, M&A and alliance activity in April-June 2018
Executive Summary
Second quarter device financing totaled $3.4 billion, less than half of the Q1 aggregate. Conversely, the $10.6 billion in device M&As was a 58% upsurge over the previous quarter. Like the device trends, total Q2 diagnostics financings (at $959 million) showed a 36% decline from Q1, while the $4.8 billion in M&A volume exhibited a significant increase over the previous quarter.
Device Transactions
Device companies brought in a total of $3.4 billion in financing during the second quarter, a significant decrease – less than half – compared with Q1’s aggregate $7.6 billion. Still, over $5 billion of the first quarter figure was outlier Siemens Healthineers AG’s IPO [See Deal], and excluding that deal means that Q2 activity actually performed better. Debt financing once again had a strong showing, in Q2, and follow-on public offerings also represented a substantial amount (see Exhibit 1).
At $947 million, debt was the leading financing vehicle for device companies in the second quarter, a slight 11% decrease from Q1’s debt total of just over $1 billion. In the most recent quarter, blood supply chain enabler Haemonetics Corp.’s $700 million loan dominated the category [See Deal]. Haemonetics – a company that sells surgical and blood collection devices as well as software and services – will use the money, which is equally split between an unsecured term loan and senior unsecured revolving credit facility, to pay pack existing debt. Haemonetics’ financing was the outlier, with the remainder of the debt transactions coming in at less than $100 million each.
FOPOs reached $839 million in Q2, a big increase over the $365 million that was brought in during the previous quarter. Quite a few companies did hundred-million-dollar deals, led by Integra LifeSciences Holdings Corp., which netted $303.8 million in its offering [See Deal]. Since buying Codman Neuro (from Johnson & Johnson’s DePuy Synthes) [See Deal] and Derma Sciences Inc. [See Deal] in 2017, Integra has built up its neurosurgery and wound care businesses. The latest funds will help Integra reduce revolving borrowings under an outstanding senior credit facility. Other hundred-million-dollar-plus FOPOs were done by Senseonics Holdings Inc. (glucose monitoring systems [See Deal]), AxoGen Inc. (allografts and surgical tools for peripheral nerve regeneration and repair [See Deal]), and Sientra Inc. (medical aesthetics [See Deal]).
On the surface, IPO dollar value appears to be way down in Q2, but the aforementioned Siemens IPO accounted for virtually all of the IPO total in Q1. The one other initial public offering done in Q1 was by Motus GI Holdings Inc., worth $16 million [See Deal]. In contrast, three second-quarter IPOs together were worth $299 million. Coming out on top in the current quarter was Inspire Medical Systems Inc., a sleep disorder firm that netted $115.5 million with shares priced at $16, the high end of its range [See Deal]. For the past four years, Inspire has been marketing in the US and Europe a minimally invasive, patient-controlled, implantable device for obstructive sleep apnea that continuously monitors a patient's breathing patterns and delivers a mild electric stimulation to the hypoglossal nerve. The company’s next project is a fifth-generation neurostimulator. The other second quarter IPOs were also done by neurostimulation companies. Neuronetics Inc. completed a $100 million offering, also pricing shares above range, to help support commercialization efforts for its NeuroStar noninvasive transcranial magnetic stimulation (TMS) device used to treat major depressive disorder [See Deal]. ElectroCore Inc.’s $83.4 million IPO will also be put toward a marketed product, namely the full launch of the noninvasive vagus nerve stimulation therapy gammaCore, as well as R&D activities including a rechargeable and reloadable version of the device [See Deal].
Venture funding totaled $1.3 billion, with late-stage rounds edging out early-stage transactions at $706 million and $541 million, or 21% and 16% of the aggregate, respectively. Two oncology device companies finalized big deals in the late-stage category. Proton therapy system maker Mevion Medical Systems Inc. closed on a $150 million funding led by YuanMing Capital and including Henan Maisheng Medical Technology, HOPU Investments, and China Everbright Ltd. [See Deal] The money will help Mevion not only move into emerging markets, but also expand manufacturing for the Hyperscan pencil beam scanning system. RefleXion Medical Inc. brought in $102.6 million through a series C round led by TPG's Rise Fund [See Deal]. With a total of $166 million in venture backing, RefleXion can support its PET imaging/biology-guided radiotherapy system, which delivers targeted high-dose radiation to multiple tumors at a time. (Also see "Bono-Backed Investment Fund Props Reflexion Medical In Final Funding Round" - Medtech Insight, 6 Apr, 2018.)
The early-stage group also featured a stand-out transaction: CMR Surgical Ltd.’s $100 million series B financing [See Deal], said to be the largest private equity deal by a device firm in Europe. (Also see "CMR Surgical's Versius Close To Launch With $100m Round" - Medtech Insight, 4 Jun, 2018.) Zhejiang Silk Road was the lead backer for the robotics start-up, which is putting the money toward ramping up commercialization for the next-generation Versius minimally invasive system. Initially the device will be used in GI, gynecological, colorectal, and renal surgeries, and is expected to compete directly with Intuitive Surgical Inc.’s da Vinci. (Also see "CMR Surgical Launches Robotic System To Rival Intuitive’s Da Vinci " - Medtech Insight, 5 Sep, 2018.) Other robotics companies also raised early-stage funds in Q1, including Medical Microinstruments SPA ($24.5 million series A [See Deal]) and Vicarious Surgical ($16.8 million series A [See Deal]. Even though the early-stage rounds featured the highest volume of transactions, at 31, it was one of the lower-grossing categories. All of the deals done except for CMR’s were each worth less than $40 million.
Digital health companies were out in full force across all venture rounds (see Exhibit 2). Akili Interactive Labs Inc., for instance, initially pulled in $55 million in a May 2018 series C funding from Temasek and multiple investors. A few months later Akili raised $13 million in an extension, for a total of $68 million in the round [See Deal]. Akili is working on prescription digital medicines for a number of conditions such as depression and multiple sclerosis. The company could soon file for approval its AKLT01, a tablet-based game for pediatric attention deficit hyperactivity disorder. Meanwhile Caresyntax’s series A financing of $31.9 million from Norgine Ventures and surgical.AI [See Deal] will advance the artificial intelligence and robotics platform being built using data from operating room devices and electronic health records. Ultimately the tool is supposed to help surgeons make better decisions and lower risk. Even with the strong showing of digital health investments, consulting and business services firm EY believes that device companies overall are less concerned with new data and customer-centric capabilities, and instead have continued to focus on deals that extend their device portfolios. (Also see "Industry Is Falling Short In Digital Investments" - Medtech Insight, 24 Sep, 2018.) According to EY, technology companies represent significant disruptors to the medtech industry; one key example is Apple Inc., which in September 2018 gained FDA approval for the Apple Watch. The product now can conduct an electrocardiogram to measure heart rhythm and alert someone if there is a risk for atrial fibrillation. (Also see "FDA's Speedy Apple Watch De Novos Raise Questions For Industry" - Medtech Insight, 24 Sep, 2018.)
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Date
|
Company
|
Description
|
Round
|
Financing Amount ($m)
|
|
May
|
Akili Interactive Labs
|
Cognitive dysfunction-focused prescription digital medicines
|
Series C
|
68
|
|
Jun.
|
Caresyntax
|
qvident platform, which brings together electronic health records and other data to provide a risk management tool for surgeons
|
Series A
|
31.9
|
|
May
|
Ava Science
|
Ava bracelet/wearable fertility tracking device
|
Series B
|
30
|
|
Jun.
|
Zebra Medical
|
Platform consisting of machine-learning algorithms used across different imaging modalities to aid in improving disease detection
|
Series C
|
30
|
|
Jun.
|
Embodied
|
Companion robotics incorporating an artificial intelligence software program
|
Series A
|
22
|
|
May
|
Propeller Health
|
Digital therapeutics for respiratory conditions
|
Series D
|
20
|
|
Jun.
|
Mindstrong Health
|
Digital measures of central nervous system function based on human-computer interaction patterns
|
Series B
|
15
|
|
May
|
Ultromics
|
Using artificial intelligence to diagnose coronary artery disease
|
Series A
|
13.4
|
|
May
|
NeuroVision Imaging
|
Incorporated machine-learning algorithms along with research into retinal amyloid build-up to develop a retinal imaging system for early detection and monitoring of Alzheimer’s
|
Series C
|
11.2
|
|
Apr.
|
Brainomix
|
e-ASPECTS artificial intelligence software which evaluates CT scans of stroke patients
|
Early-stage (undisclosed)
|
9.8
|
|
May
|
BrainQ Technologies
|
Artificial intelligence-powered technologies for neurological disorder rehabilitation
|
Early-stage (undisclosed)
|
8.8
|
|
Jun.
|
Paradromics
|
Sensory restoration using an implantable brain-machine interface technology
|
Seed
|
7
|
The total value of device acquisitions reached $10.6 billion in the second quarter, a 58% increase over the $6.7 billion from the first quarter. There were also slightly more transactions done, 23, than the previous 15. The current three-month period included two large exits by Big Pharma (see Exhibit 3).
Novartis AG’s divestment of Alcon Inc. led in Q2 value, with the latter’s spin-off (through a share buyback program) as an independent company worth $5 billion [See Deal]. For several years Alcon had been struggling to grow, but just recently sales rebounded slightly, worth an estimated $7 billion in 2018 (2017 sales were just over $6 billion). Another factor contributing to the deal is Novartis’ move away from diversified to pharma-focused businesses – in Q1, GlaxoSmithKline PLC acquired Novartis’ 36.5% equity stake in the consumer joint venture they formed in 2014 [See Deal] [See Deal]. Owned by Nestle SA before being acquired by Novartis fully in 2010 [See Deal], Alcon operates surgical and vision care businesses, which sell a variety of products from devices to contact lenses. The spin-off does not include Alcon's ophthalmology pharmaceuticals, which stay with Novartis. (Also see "Novartis Sees The Light And Plumps For Alcon Spin-Off " - Scrip, 29 Jun, 2018.)
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Month
|
Acquirer/Acquired (Business)
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Terms
|
|
Jun.
|
Alcon/Novartis (surgical devices and vision care products)
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$5bn share buyback program; 0.83x sales
|
|
Jun.
|
Fortive/Johnson & Johnson’s Ethicon’s Advanced Sterilization Products (sterilization instruments and disinfectants for hospital-acquired infection prevention)
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$2.7bn: $2.7bn in cash and $0.1bn of retained net receivables; 3.48x sales
|
|
Apr.
|
Altaris Capital/Analogic (medical imaging, ultrasound, and security and detection)
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$885m in cash: $84 per share (a 16.4% premium); 1.82x sales
|
|
May
|
MedPlast (now called Viant)/Integer Holdings’ Advanced Surgical and Orthopedics (metals manufacturing capabilities, including machining, stamping, coating, and metal forming)
|
$600m in cash
|
|
Jun.
|
Philips Healthcare/EPD Solutions (cardiac imaging and navigation)
|
$538m in cash: $292m up front and $246m in earn-outs
|
The second quarter featured another billion-dollar acquisition, and a divestment from a Big Pharma company. Fortive Corp. bought Advanced Sterilization Products from Johnson & Johnson’s Ethicon Inc. for $2.7 billion [See Deal]. ASP’s main product STERRAD sterilizes instruments to prevent hospital-acquired infections; ASP also offers other disinfectants. J&J has been reviewing its device businesses, and earlier in the year it sold the blood glucose monitor business LifeScan Inc. to Platinum Equity for $2.1 billion [See Deal]. In Q3, J&J’s Calibra Medical Inc. also divested to CeQur SA certain assets, including global rights to the OneTouch Via wearable insulin delivery patch [See Deal].
Active acquirers included Royal Philips Electronics NV and Boston Scientific Corp., which each did two transactions. In the fifth-largest deal by value in Q2, Philips Healthcare paid $292 million up front for EPD Solutions Ltd., which could get another $246 million in earn-outs [See Deal]. Joining Philips’ image-guided therapy business, EPD brings a CE-marked device for 3D imaging of the heart during cardiac arrhythmia ablation procedures. A 510(k) application is under review in the US. Philips is already active in the vascular surgery, angioplasty, and peripheral vascular intervention markets. Philips’ other acquisition, Remote Diagnostic Technologies, covers a separate device category in emergency care and resuscitation solutions. RDT offers monitoring, cardiac therapy and data management that will complement the life support machines, automatic external defibrillators, and other products in Philips’ Therapeutic Care business.
Similarly, Boston Scientific’s Q2 takeovers were each in different markets. The company’s $275 million ($150 million up front plus $125 million in earn-outs) acquisition of nVision Corp. gives a boost to the former’s gynecology and urology operations [See Deal]. NVision is unique in that it is the only firm to have FDA approval for a device, Mako 7, that collect cells from the fallopian tubes in an effort to diagnose ovarian cancer early. The cells are collected during minimally invasive hysteroscopic procedures; there is evidence that many forms of ovarian cancer originate in the epithelial lining of the fallopian tubes. In its second acquisition of the quarter, Boston Scientific bought the remainder of Securus Medical Group Inc. that it did not already own for $40 million up front and a $10 million earn-out [See Deal]. Securus, which had received an investment from Boston Scientific through its $10 million series C round in 2016 [See Deal], is an electrophysiology company whose key asset is an integrated catheter-based probe and imaging system that performs real-time intra-body thermal measurement with a 360-degree view for continuous esophageal temperature monitoring. The FDA-approved product’s primary application is in atrial fibrillation procedures performed with catheter ablation. (Also see "Bringing The Clinician's Rationale Into The Heart Of Strategic Decision-Making At Boston Scientific" - In Vivo, 17 Sep, 2018.) Temperature management was also the focus of another acquisition in Q2, Belmont Instrument LLC’s purchase of Menne Medical Ltd.’s MTRE Advanced Technologies Ltd., including product lines such as Allon and ThermoWrap for normothermia management, and CritiCool and CureWrap for temperature regulation.
While preliminary, it’s worth noting General Electric Co.’s planned exit from the health care space through the spin off of GE Healthcare. The move comes as General Electric refocuses on power, aviation, and renewable energy; the conglomerate also has plans to divest other businesses, including oil and gas services, distributed power, and transportation. Operating as a stand-alone company, GE Healthcare participates in multiple markets, including medical imaging, patient monitoring and diagnostics, drug discovery, and manufacturing. It also has a strong presence in digital health, and plans to continue to pursue opportunities in artificial intelligence and precision medicine. Considered to be the fourth-largest medtech company in the world, GE Healthcare achieved $19 billion in revenue in 2017. (Also see "GE Spins Off Healthcare As Part Of Major Reorganization" - Medtech Insight, 26 Jun, 2018.)
Diagnostics Transactions
Diagnostics and research-focused companies raised $959 million during the second quarter, a 36% decline from the $1.5 billion brought in during Q1 2018. Most of the Q2 money came from late-stage venture rounds, which represented just under half (49%) of the quarter's total dollars (see Exhibit 4).
Grail Inc.'s $300 million series C round, Q2's largest financing, made up 64% of the late-stage VC category's $470 million aggregate [See Deal]. Grail, a 2016 spin-out of Illumina Inc., is developing liquid biopsies for early cancer detection [See Deal]. Grail's tests use a high-speed DNA sequencing platform that originated from its former parent. In June 2017, Grail merged with private Hong Kong-based start-up Cirina Ltd. (now an absorbed division), expanding its product potential through the addition of Cirina's circulating tumor DNA technology and gaining better access to the noninvasive molecular diagnostics market in Asia [See Deal]. The backers in the series C round (co-led by Ally Bridge Group, Hillhouse Capital Group, and 6 Dimensions Capital) were all China-affiliated investors, accentuating the US company's plans to grow its operations in that territory; the Hong Kong launch of Grail's first product for the early detection of nasopharyngeal cancer is planned this year. To date, Grail has raised over $1.5 billion through three venture rounds.
There were two other standouts bringing in undisclosed late-stage financings during Q2: Rapid Micro Biosystems Inc. (microbial detection technology) closed a $60 million round [See Deal], while research-focused Twist Bioscience Corp. (semiconductor-based synthetic DNA manufacturing for applications including biodetection and genomics) garnered $50 million, and the company could bring in up to $35 million more before the round closes [See Deal]. In a third transaction, another research company, genome sequencing firm 10X Genomics Inc., raised $50 million in series D financing and concurrently secured a $75 million credit facility with Silicon Valley Bank [See Deal].
The early-stage round category accounted for just 9% of the Q2 total. Another liquid biopsy firm, Clinical Genomics Pty. Ltd., raised $26 million through what is assumed to be its series B round [See Deal]. Start-up Predicine Inc. (also developing blood-based diagnostics) brought in $13.5 million in series A funding. Notably, two start-ups involved in home-based fertility testing brought in early-stage money. Modern Fertility (minimally invasive at-home hormone test to predict fertility) was seeded with $6 million [See Deal] and Confer Health Inc. (in-home, direct-to-consumer diagnostic for at-home fertility tracking and strep throat detection) raised $9.5 million in an undisclosed early-stage round, assumed to be its series A [See Deal].
The debt category, accounting for almost a third of all Q2 financing dollars, was led by Exact Sciences Corp.'s upsized offering of $190 million aggregate principal amount of its 1% senior notes due 2025, which grossed $202 million [See Deal], or 70% of the $290 million total Q2 debt financing. Exact Sciences, which launched its Cologuard noninvasive stool DNA-based test for colorectal cancer in the US in August 2014, also netted $673 million through a January 2018 convertible notes offering [See Deal]. The company will use the proceeds of both offerings to support its strategic plan of further commercializing Cologuard and developing a pipeline of future tests for other types of cancer. (In Q3, in fact, Exact signed a deal with Pfizer Inc. to co-promote (equally sharing profits and expenses) Cologuard in the US and Puerto Rico [See Deal].)
Just one diagnostics firm – ViroGates AS (prognostic biomarker tools used in clinical decision making) – went public during Q2 [See Deal]. The company, which netted $9 million through its IPO on Nasdaq First North Denmark, will use the proceeds for commercialization and other activities related to its suPARnostic blood test (detects the suPAR (soluble urokinase plasminogen activator receptor) protein, a prognostic biomarker that indicates the presence of a disease, its severity, and patient prognosis).
Second quarter diagnostics merger and acquisition transactions, totaling $4.6 billion, increased more than seven-fold over Q1's $543 million aggregate. Most of the Q2 total was from Roche's purchase of the remaining 43% stake of tumor genomic profiling company Foundation Medicine Inc. (FMI) it didn’t already own for $2.4 billion (total company value of $5.3 billion on a fully diluted basis) [See Deal] (see Exhibit 5). (Also see "Roche Pushes Personalization With $2.4bn Foundation Buy-Out" - Scrip, 19 Jun, 2018.) FMI provides comprehensive genomic profiling for individuals and industry partners. Its products and services include solid and hematological tumor analysis (using its FoundationOne and FoundationOne Heme assays, respectively); liquid biopsy to screen for circulating tumor DNA (FoundationACT); a companion diagnostic (FoundationFocus) for Clovis Oncology Inc.’s ovarian cancer drug Rubraca (rucaparib); and a broad companion diagnostic (FoundationOne CDx) to identify the most likely responders to one of 17 targeted therapies for several solid tumor types. Roche first took a minority stake through its participation in FMI’s 2012 series B round [See Deal]. Roche went on to later invest $1.05 billion, bringing its ownership to 57% in 2015 [See Deal], concurrent with the establishment of an R&D and commercial partnership focused on molecular information and genomic profiling tests for cancer [See Deal]. FMI, which went public through a $113 million IPO in 2013 [See Deal], will continue to operate independently and autonomously (although it’s not clear if or when the company will cease trading its shares publicly).
|
Month
|
Acquirer/Acquired (Business)
|
Terms
|
|
Jun.
|
Roche/Foundation Medicine (tumor genomic profiling)
|
$2.4bn; $137 per share in cash (a 34% premium) to acquire remaining 43% not already owned; 31.54x sales
|
|
Jun.
|
Fujifilm/Irvine Scientific/IS Japan (research media)
|
$800m in cash for both companies
|
|
Jun.
|
Bio-Techne/Exosome Diagnostics (biofluid-based testing)
|
$575m; $250m in cash, plus earn-outs up to $325m based on achievement of certain earnings targets
|
|
May
|
Myriad Genetics/Counsyl (reproductive testing)
|
$375m (up to 25% of that amount in Myriad stock); 2.8x sales
|
|
Apr.
|
Axcel/Orion Diagnostica (point-of-care testing instruments and kits)
|
$276m; $202m in cash, plus earn-outs up to $74m based on Axcel's return on investment; 2.97x sales
|
In another large transaction, Bio-Techne Corp. paid $250 million to acquire privately held biofluid-based diagnostics firm Exosome Diagnostics Inc. [See Deal]. Bio-Techne could provide up to $325 million more in earn-outs based on the achievement of certain EBITDA targets in 2020 and 2022. Exosome’s first marketed test, ExoDx Prostate (IntelliScore) (EPI), extracts exosomes (messengers containing nucleic acids for diagnostic purposes) from the urine of men with high-grade prostate cancer to detect three unique biomarkers indicative of the aggressiveness of the disease. Exosome has also launched a non-small cell lung cancer test. The acquisition is complementary to Bio-Techne’s molecular pathology business Advanced Cellular Diagnostics Inc. (acquired in 2016 [See Deal]), which offers single-cell-level detection and monitoring of single RNA molecules with its RNAscope RNA in situ hybridization platform.
Myriad Genetics Inc. agreed to pay $375 million (up to 25% in Myriad stock) to acquire private DNA screening company Counsyl Inc. (prenatal testing, women's health, hereditary disorder screening, and genetic counseling services) [See Deal]. Counsyl's consumer DNA testing business is headed up by lead product Foresight – a pre-pregnancy carrier screen for genetic diseases that uses DNA sampling from both potential parents – which accounts for 64% of its revenues. The acquisition creates a new reproductive health-focused subsidiary within Myriad's existing Preventive Care unit, which will be known as Myriad Women's Health. (Also see "Myriad Genetics Grows Women's Health Biz With Counsyl Acquisition " - Medtech Insight, 29 May, 2018.)
In the second quarter's only buy-out, an investment fund managed by Nordic private equity investment company Axcel Management AS acquired Orion Diagnostica Oy (point-of-care testing instruments and kits) for a fixed price of $202 million, three times the company's 2017 net sales [See Deal]. Axcel could potentially pay $74 million more as a variable component based on Axcel's return on investment for the transaction. Parent Orion Corp. first announced in January 2018 that it was looking at strategic alternatives for its diagnostics division (which makes up about 5% of its net sales) to allow it to focus on growth within its core pharmaceuticals business. Orion Diagnostica's network covers over 60 countries, with 90% of its sales coming from international markets. Together with Orion Diagnostica’s management team, Axcel intends to continue building the company’s strong position in the global diagnostics market with plans to pursue opportunities of further geographical expansion.
There were two acquisitions in the research space. In the larger deal, Fujifilm Corp. paid $800 million to acquire research media companies Irvine Scientific Sales Co. Inc. (US) and IS Japan Co. Ltd. (Japan) [See Deal]. Irvine Scientific manufactures cell culture media for the large-scale production of biotherapeutics and vaccines as well as reagents and medical devices for researchers and clinicians working in assisted reproductive technology (ART; sperm processing and oocyte handling and fertilization, and embryo culture, cryopreservation, and transfer procedures); cytogenetics (prenatal and postnatal tissue sampling and karyotyping); and cell therapy (various cell populations with specific functionality and phenotype for therapeutic applications). IS Japan, a distribution partner of Irvine Scientific, manufactures cell culture media and medical equipment, including in vitro fertilization (IVF) reagents and products for regenerative medicine and cell therapy research. The additions of the broad portfolios from both companies enable Fujifilm to strengthen and expand contract development and manufacturing for its existing biopharmaceuticals and reagent businesses and accelerate R&D within regenerative medicine.
In a smaller deal, Agilent Technologies Inc. also acquired the assets of two scientific research companies – Ultra Scientific, a US provider of chemical standards and certified reference materials, and Young In Scientific Co. Ltd. (YI Scientific), a South Korean distributor of analytical and scientific instruments – paying $60 million for both [See Deal]. Ultra Scientific provides expanded complementary workflow solutions across Agilent's existing instrument platforms. The addition of YI Scientific's laboratory analytical systems and related technologies (including chromatographs, mass spectrometers, and chemical sensors, many of which are Agilent brands from their existing supply partnership) for research, testing, and quality assurance, will enable integrated sales and services for existing customers of Agilent products in South Korea. In a deal signed during Q1, Agilent also bought Advanced Analytical Technologies Inc. (high-throughput, fully-automated nucleic acid analysis systems) for $250 million [See Deal]. Agilent was also active in the diagnostics space with an April deal in which it exercised an option to acquire the remaining 52% not already owned in Lasergen Inc. for $105 million [See Deal]. (Through a 2016 partnership, Agilent had invested $80 million in the next-generation sequencing (NGS) company for a 48% stake [See Deal].) Lasergen's Lightning Terminators chemistry, which offers cheaper and faster genome sequencing, will help Agilent advance its goal of building a complete routine clinical NGS workflow.