Scantox Acquires TwinStrand's Genomics Business
Scantox Group has acquired the nonclinical genomic safety business from TwinStrand Biosciences. The acquisition is aimed at expanding Scantox's advanced mutagenesis testing services to support regulatory genetic toxicology and next-generation genomic safety assessment.
- The core of this acquisition is TwinStrand's DuplexSeq™ technology, a method of error-corrected next-generation sequencing that can detect rare genetic mutations with up to 10,000 times more accuracy than standard methods. This allows for the identification of ultra-low frequency DNA mutations that were previously undetectable. - This deal follows a period of significant change for TwinStrand, which laid off nearly 50% of its workforce in October 2022 and saw its co-founder, Jesse Salk, step down as CEO. In August 2023, the company appointed Ron Andrews, a molecular diagnostics veteran, as its new CEO to lead a transition from the research to the clinical market. - The acquisition is a strategic move for Scantox to become a one-stop-shop for genetic toxicology services. The DuplexSeq™ technology complements Scantox's 2024 acquisition of Gentronix, which gave it capabilities in the Big Blue® transgenic rodent mutation assay. - Scantox is a private equity-backed contract research organization (CRO) that has been expanding through a series of acquisitions since being acquired by Impilo from Charles River in 2021. Its CEO, Jeanet Løgsted, has stated the goal is to continuously expand the service portfolio to meet client demands. - TwinStrand's patent portfolio for Duplex Sequencing has recently been a significant asset. In November 2023, a federal jury ordered Guardant Health to pay $83.4 million for willfully infringing on these patents. Subsequently, in July 2024, TwinStrand announced an exclusive licensing agreement with Exact Sciences for its patent estate in the cell-free nucleic acid sequencing space. - The transaction is structured as a technology transfer and license agreement, granting Scantox the exclusive global rights to provide DuplexSeq™ Mutagenesis Assays and related nonclinical genomics safety services. - The broader genetic toxicology testing market is projected to see significant growth, with one forecast predicting an increase from $2.9 billion in 2026 to $4.8 billion by 2033. This growth is driven by a rising demand for safer products and more accurate risk assessment in drug development.
