SAGA Diagnostics, a pioneering Lund-founded biotechnology company specializing in advanced cancer diagnostics, has entered into an agreement to be acquired bacquired by Foundation Medicine, a leader in comprehensive genomic profiling. The acquisition, announced yesterday and valued at up to € 504 million, underscores the growing global demand for precision diagnostics and liquid biopsy solutions, and marks a significant milestone for the Nordic life sciences sector.
SAGA Diagnostics has developed a groundbreaking technology that detects and monitors cancer through the analysis of tumour-specific structural variations in DNA from blood samples. Unlike traditional methods that focus on individual mutations, SAGA approach enables highly sensitive detection of residual disease, allowing for earlier identification of cancer recurrence – a critical factor in improving treatment outcomes.
“I’m a bit overwhelmed and so incredibly proud of everyone who helped get us here. 10 years ago Anthony George and I spun-out SAGA Diagnostics, and today it enters a definitive merger agreement with Foundation Medicine (Roche). This means ultrasensitive ctDNA monitoring can now reach thousands of cancer patients around the world.”
said Lao Saal co-founder
The company’s flagship product, Pathlight™, has achieved several key milestones since its 2021 financing round, including clinical validation with strong results, a commercial launch in the U.S., and Medicare reimbursement for breast cancer. These achievements have positioned SAGA Diagnostics at the forefront of the rapidly expanding liquid biopsy market, which is poised to transform cancer care through earlier and more precise interventions.
“Our mission at SAGA is to intercept cancer early when patients are most treatable and curable. Foundation Medicine’s commercial scale and innovation accelerates our ability to bring this unique MRD platform to more patients worldwide. We are proud of our team for advancing innovation in the MRD field and commercially launching Pathlight to improve patient outcomes.”
said Roopom Banerjee, Executive Chairman of SAGA.
A Strategic Acquisition in a Growing Field
The acquisition comes at a time of surging global interest in precision diagnostics, driven by the need for more personalized cancer treatments and the potential for earlier detection of recurrence. Liquid biopsy-based solutions, in particular, are experiencing strong growth due to their ability to detect minimal residual disease (MRD) – a game-changer for patient outcomes.
The company was founded in Lund, and has been part of the Smile incubator. But since 2023 had most of its approximately 100 staff in the US, with only a smaller R&D team in Lund. However, multiple of the key investors are from the ecosystem, such as LU Ventures and FSG (Fåhraeus Startup and Growth), which was one of the biggest external shareholders with a bit under 10% of the shares.
But also other life science investors, such as Sciety, which led Saga’s € 10 million financing round in 2021.
“When Sciety invested in Saga Diagnostics, we recognized the transformative potential of their technology. Since then, the company has not only validated its clinical and commercial relevance but also established itself as a leader in a field that is reshaping cancer care. This acquisition will accelerate the reach of Saga’s innovations to more patients worldwide. It also represents Sciety’s tenth exit, a testament to the strength of Nordic life sciences and our collaborative investment approach.”
Andreas Lindblom, Managing Partner at Sciety
