Quest Diagnostics has finalized its previously announced acquisition of Baltimore-based Haystack Oncology, the Secaucus clinical laboratory company said June 21. 

Under the terms of the deal unveiled April 27, Quest said it would pay Haystack $300 million in cash at closing, net of cash acquired, and up to an additional $150 million based on future performance milestones. 

According to the buyer, Haystack Oncology has developed a highly sensitive, minimal-residual disease (MRD) testing technology, based on circulating tumor DNA (ctDNA), to aid in the early detection of residual or recurring cancer.  

Quest expects to incorporate this technology into the development of blood-based clinical lab services for solid tumor cancers, available beginning in 2024. 

“We are excited by the opportunity to work together with Haystack Oncology, a company that we believe has developed a best-in-class ctDNA MRD technology,” Quest Chairman, CEO and President Jim Davis said in April. “Haystack’s liquid biopsy technology, combined with Quest’s strengths in screening, pathology and sequencing, will now position us to lead in the fast-growing MRD category. Working with Haystack, we have an opportunity to broaden access to MRD insights and potentially improve favorable long-term outcomes from cancer.” 

In addition to its Maryland base, Haystack also has research facilities in Hamburg, Germany. 

J.P. Morgan Securities LLC acted as exclusive financial advisor to Quest, and Weil, Gotshal & Manges LLP acted as Quest’s legal advisor. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Haystack, and Goodwin Proctor LLP acted as Haystack’s legal advisor.