The Florida health-software maker that last July acquired a stake in Hartford biomedical-testing provider Genomas says it has purchased the remainder of Genomas' equity for an additional $1.75 million, plus assumption of debt.
Rennova Health, based in West Palm Beach, said Monday that it acquired the remaining approximately 85 percent of Genomas in exchange for newly created convertible preference shares, plus taking on Genomas' $800,000 of existing debt.
In July, the pair announced that Rennova had paid $250,000 cash for Hartford Hospital's approximately 15 percent stake in Genomas. The deal included assumption of Genoma's intellectual property.
In late September, Rennova and Genomas announced a definitive pact for Rennova to purchase the balance of Genomas, which will continue operating in leased laboratory space at Hartford Hospital.
On Monday, Rennova disclosed conversion terms for the preference shares issued in connection with the buyout. The conversion, which cannot occur until at least a year from the Sept. 29 purchase date, will be priced at the higher of two options — $1.95, or the average of the closing price of Rennova shares during the 10 days prior to conversion.
"This acquisition allows Rennova to deliver diagnostic results that use DNA-guided management and selection of drugs used to treat mental illness, pain, heart disease, and diabetes," Rennova CEO Seamus Lagan said in a statement. "Genomas PhyzioType Systems provide physicians with an unprecedented capability to reduce risk and select the safest and most effective drug to achieve treatment goals and enhance patient compliance.''
Genomas is led by Dr. Gualberto Ruano, who also leads Hartford Hospital's Genetics Research Center. Genomas conducts genetics-based testing for personalized prescription of drugs used to treat mental illness, diabetes and cardiovascular disease.
"With Rennova, we will deliver the integrated molecular, biochemical and informatics monitors for precision medicine: the suite of pharmacogenetics, toxicology, and clinical decision support," said Ruano, Genomas' president and medical director. "This industry-leading platform from Rennova will help prevent adverse events and addiction when interacting drugs are prescribed in behavioral health and primary care."
As previously reported, Rennova first partnered with Genomas in March to launch a series of medical tests.
Rennova's Lagan said at that time that the deal significantly strengthens their fledgling relationship and will help accelerate the development of diagnostics.
"This will also help to reduce healthcare costs," Lagan said. "We expect additional benefit from this relationship by offering our current Rennova products and services to Genomas customers."