SAN ANTONIO, Texas– bioAffinity Technologies, Inc. (Nasdaq: BIAF, BIAFW), a biotechnology company addressing the need for noninvasive detection of early-stage lung cancer, announces the acquisition of the laboratory assets of Village Oaks Pathology Services, P.A., d/b/a Precision Pathology Services, a clinical laboratory accredited by the College of American Pathologists (CAP) and certified under the Clinical Laboratory Improvement Amendments (CLIA) of 1988. The laboratory assets are being acquired by a new wholly owned subsidiary of bioAffinity Technologies, Precision Pathology Laboratory Services, LLC (PPLS). bioAffinity Technologies management will host a conference call today to discuss the acquisition. Instructions for accessing the call can be found below.
Precision Pathology provides pathology services to physicians practicing in a variety of outpatient settings and has offered bioAffinity Technologies’ CyPath® Lung as a laboratory developed test for the detection of early-stage lung cancer. This transaction gives bioAffinity the opportunity to build a commercial laboratory with scale with the goals of accelerating the market uptake and success of CyPath® Lung, supporting the test’s upcoming 1,800-patient FDA pivotal trial, and pursuing the development and commercialization of additional tests. In addition to CyPath® Lung, Precision Pathology offers a range of laboratory services including respiratory testing for SARS-CoV-2 and influenza, anatomic pathology, morphological stains, histological services, DNA extractions, STI testing, and women’s and men’s health testing.
Precision Pathology was acquired for $3.5 million including $2.5 million in cash and $1.0 million in bioAffinity common stock.
“The acquisition of our partner laboratory Precision Pathology supports and enhances bioAffinity’s commercial strategy by integrating every aspect of CyPath® Lung, from manufacturing to sales and marketing, and now to pathology services and reporting results back to physicians. With core operations established over the past 16 years and an unwavering commitment to quality and customer service, Precision Pathology is precisely the asset bioAffinity needs to build scale and efficiency to make CyPath® Lung a strong success,” bioAffinity Technologies President and CEO Maria Zannes said.
“Combining the ground-breaking innovation and expertise of both companies supports the launch of our FDA pivotal trial for CyPath® Lung and further advances our ability to develop additional products, including a test for COPD. This consolidation also allows bioAffinity to capture 100% of the revenues from the sale of CyPath® Lung,” Ms. Zannes said. “Precision Pathology has earned an excellent reputation across medical specialties and has been a strong partner. We welcome our new colleagues to bioAffinity.”
Roby P. Joyce, M.D., who founded Precision Pathology in 2007, will continue as medical director of PPLS and will join the bioAffinity Technologies board of directors. In accordance with law that requires a physician to own a medical professional association, Dr. Joyce will retain ownership of Village Oaks Pathology Services, the medical professional association whose pathologists work with Precision Pathology. As part of the transaction, bioAffinity Technologies has signed a management services agreement with the association to provide staff, equipment and administrative support for a fee with an initial term of 20 years.
“We have worked side by side with Maria and her team for the past five years to bring CyPath® Lung to market, and I have been consistently impressed by bioAffinity’s scientific team and management. This acquisition represents a tremendous opportunity for both organizations to create a stronger, more complete platform to address unmet needs in cancer diagnostics,” Dr. Joyce said. “I am particularly excited about CyPath® Lung because, as a physician, I know that lung cancer is highly curable when detected early and before it has spread. Supporting CyPath® Lung is among the most important things I have done in my career, and I have no doubt that this test will save many lives.”
Dr. Joyce is board-certified in anatomic and clinical pathology by the American Board of Pathology and is a Fellow in the College of American Pathologists. He is also board-certified in neurology by the American Board of Psychiatry and Neurology (Neurology) and is a Fellow in the American Academy of Neurology. In addition to his role at Precision Pathology, he has served in various capacities at Northeast Methodist Hospital in San Antonio, including Chairman of the Board of Trustees from 1994-1995 and Chief of Staff of the Methodist Healthcare System from 2005-2006. Throughout a career in pathology that spans more than 40 years, he has been a highly regarded speaker at medical and scientific conferences, has served in leadership roles on dozens of professional organizations and committees, and has served as lead or co-author of numerous scientific articles.
Dr. Joyce received his medical degree from Louisiana State University in New Orleans. He completed an internal medicine internship at Fitzsimons Army Medical Center in Denver, his residency in neurology at the Letterman Army Medical Center Hospital in San Francisco and his residency in pathology at Brooke Army Medical Center in San Antonio.
