Freenome, developer of checks that determine early indicators of most cancers from a small pattern of affected person blood, goes public in a merger deal that can infuse the corporate with $330 million to help a pipeline that would yield its first commercialized take a look at in 2026.
The early most cancers detection firm is merging with Perceptive Capital Options Corp, a particular function acquisition firm (SPAC) sponsored by an affiliate of Perceptive Advisors, the companies introduced Friday. The mixed firm will take the Freenome identify. When the deal closes, Freenome’s inventory is anticipated to commerce on the Nasdaq below the inventory image “FRNM.”
Brisbane, California-based Freenome is a part of a gaggle of firms growing checks that detect organic and genetic indicators of most cancers by analyzing a small pattern of affected person blood, a so-called liquid biopsy. Freenome’s platform know-how makes use of synthetic intelligence and machine studying methods to research samples and determine most cancers alerts. Such checks are meant to detect most cancers on the earliest phases of illness when therapy has a higher probability of success. Early most cancers detection represents a $50 billion market alternative, Freenome stated in an investor presentation.
A colorectal most cancers take a look at is Freenome’s most superior product candidate. This take a look at, referred to as SimpleScreen, is presently below FDA overview with a regulatory determination anticipated in mid-2026. Freenome’s most important competitor in colorectal most cancers detection can be Guardant Well being, whose Protect take a look at was the primary FDA-approved liquid biopsy for such a most cancers. Actual Sciences was anticipated to compete with its personal take a look at, however medical trial outcomes from a pivotal research had been disappointing. Subsequently, Actual struck a cope with Freenome in August, paying $75 million up entrance for U.S. rights to SimpleScreen for the only indication of colorectal most cancers screening.
The Actual Sciences deal permits Freenome to maintain rights to colorectal most cancers screening as a part of a multi-cancer detection take a look at it’s growing to display screen for greater than 10 cancers from a pattern of affected person blood. Roche, which already has an current relationship with Freenome as an investor, final month reached a deal securing rights to commercialize the corporate’s “kitted” multi-cancer early detection checks exterior of the U.S. Kitted checks bundle the assay and software program collectively to allow processing and evaluation of a pattern while not having a centralized lab. This deal got here with a $75 million upfront fairness funding in Freenome; one other $134 million is tied to the achievement of milestones. Freenome retains rights to U.S. multi-cancer early detection testing in addition to U.S. rights to kitted checks.
Freenome is pursuing a “versioning technique” wherein assay and algorithm enhancements can be integrated into later variations of its checks. The regulatory submission presently below FDA overview is for model 1 of SimpleScreen. The corporate expects a regulatory submission for model 2 can be prepared by the center of subsequent 12 months. The investor presentation provides a peek into these knowledge, displaying 75% sensitivity for detecting stage I colorectal most cancers; sensitivities for superior adenoma and high-grade dysplasia had been 22% and 44% respectively. Whereas these marks prime the outcomes reported for model 2 of Guardant’s Protect, William Blair analyst Andrew Brackmann stated in a analysis word that the model 2 knowledge for SimpleScreen is the ultimate medical validation knowledge and never the pivotal knowledge anticipated to be submitted to the FDA.
“We, not surprisingly, have questions concerning how this research was run, the place the cancers are from, and so on., however even nonetheless, outcomes do present some good enchancment versus v1,” Brackmann stated.
Guardant’s Protect has first mover benefit out there, projected to do greater than 80,000 checks this 12 months, Leerink Companions analyst Puneet Souda stated in a analysis word. With the second model of SimpleScreen not anticipated to be filed till the second half of subsequent 12 months, Guardant has time to enhance its subsequent take a look at, Protect model 3. However Leerink sees the marketplace for liquid biopsies as giant, with about 11 million average-risk people keen to be screened with a blood take a look at however not a colonoscopy. That leaves room for a number of opponents, Souda stated.
Since its 2014 founding, Freenome had raised greater than $1.3 billion, the corporate stated within the investor presentation. The SPAC merger is anticipated to infuse the corporate with about $330 million. That sum breaks all the way down to $90 million from a belief account held by Perceptive Capital Options and a $240 million personal funding in public fairness (PIPE) led by Perceptive Advisors and RA Capital. The traders within the PIPE will buy 24 million Freenome shares on the worth of $10 every.
Including Freenome’s personal funds, which incorporates funds from the Actual Sciences and Roche offers, the corporate expects to have greater than $1.3 billion whole when the merger closes, based on the presentation. Proceeds from the transaction and money available can be utilized towards product growth, medical testing, and commercialization actions.
The Freenome and Perceptive Capital Options boards of administrators have authorised the merger, which is anticipated to shut within the first half of 2026. The deal nonetheless wants the approval of shareholders of each firms.
Photograph: MilosJokic, Getty Pictures
