Rennova Health (RNVA) Offers Update on Genomas Acquisition; Achieves Milestone

November 2, 2016 8:34 AM EDT
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Rennova Health, Inc. (Nasdaq: RNVA) (Nasdaq: RNVAZ) announces additional details regarding its recent acquisition of Genomas, Inc.

“We are very pleased to have acquired Genomas, Inc., as announced on September 29, 2016. Genomas diagnostics and technology fits within our core business model and allows us to expand our offer of industry leading diagnostics to doctors and their patients. The opportunity to take ownership of a diagnostic solution that reflected the investment of many years and millions of dollars to develop and to then be able to utilize our sales, compliance and billing infrastructure to grow the business are activities in which we have a proven ability to excel,” said Rennova CEO, Seamus Lagan. In discussing this acquisition, Mr. Lagan highlighted the following:

  • Genomas conducts a genetic diagnostic using FDA approved kits and methodology that gives the physician the ability to evaluate, select and manage a patient’s medications based on DNA analysis and proprietary algorithms so as to improve efficacy and avoid potentially serious complications and drug interactions.
  • Rennova Health has now added the pharmacogenetic tests performed via FDA-approved in vitro diagnostic (IVD) genotyping kits to its menu and has already succeeded in securing referrals for in excess of 400 patients.
  • Results for the diagnostics are delivered through an online portal and the proprietary and patented software MEDtuning, which provides an advanced genetic assessment of the medicines currently prescribed or being considered for a patient. The MEDtuning report can significantly improve the management of patients on multi-drug regimens to treat common general and mental health diseases, whether it be addiction, pain management, depression or diabetes.
  • Rennova sales team will focus on marketing a variety of pharmacogentic panels utilizing genes for which various payers have approved CPT codes for reimbursement.
  • Rennova originally acquired a third party’s 15% holding in Genomas for $250,000 on July 20th 2016. Following that, Rennova signed a definitive agreement to acquire the balance of Genomas on 29th September 2016, for newly created Series F convertible preference shares that convert into a maximum of 897,436 common shares no earlier than 12 months after the close and no later than 60 months after the close. Rennova also assumed $800,000 of debt owed by Genomas at closing.

“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 Dr. Gualberto Ruano, President & Medical Director, Genomas. “This industry-leading platform from Rennova will help prevent adverse events and addiction when interacting drugs are prescribed in behavioral health and primary care,” added Dr. Ruano.

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