Castle Biosciences to Acquire Previse
Rhea-AI Summary
Positive
- Expansion of Castle's GI testing portfolio with complementary technologies
- Access to Johns Hopkins-developed methylation technology
- Strategic fit with existing TissueCypher Barrett's Esophagus test
- Additional pipeline technologies for future growth opportunities
Negative
- Financial terms and acquisition cost not disclosed
- Integration risks and timeline uncertainties
- Success of pipeline technologies not guaranteed
News Market Reaction
On the day this news was published, CSTL declined 11.36%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Expected to complement Castle’s current gastroenterology franchise
Adds methylation technology developed at the Johns Hopkins University School of Medicine and additional technologies in development
FRIENDSWOOD, Texas, May 05, 2025 (GLOBE NEWSWIRE) -- Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced it has signed a definitive agreement to acquire Capsulomics, Inc., d/b/a Previse. Previse is a gastrointestinal health company with a primary focus on chronic acid reflux related diseases, including esophageal cancer. The terms of the agreement are undisclosed.
“This proposed transaction underscores our commitment to the gastrointestinal (GI) community-providers and patients,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “Our growth initiatives include the continual assessment of complementary technologies. With Previse, we found an opportunity to expand our offerings within our GI vertical, beyond our spatialomics TissueCypher Barrett’s Esophagus test, allowing us to offer customers a more robust set of testing options. Previse’s methylation technology, as well as its pipeline technologies, provide us with the potential to address existing unmet needs, including potential upstream opportunities.”
“We are excited about joining Castle,” said Daniel Lunz, chief executive officer of Previse. “We look forward to the advancements to care we can make together for patients with GI diseases-our technologies, combined with Castle’s TissueCypher test and history of executional success.”
The transaction is expected to close in the coming weeks, subject to the customary closing conditions.
About Previse and Esopredict
Established in 2018, Previse is a gastrointestinal health company with a primary focus on chronic acid reflux related diseases, including esophageal cancer. Previse's mission is to save lives and improve patient health through prevention and early detection. Previse leverages groundbreaking biomarker technology developed by Stephen Meltzer, M.D., and his GI Early Detection Biomarker Lab at the Johns Hopkins University School of Medicine and exclusively licensed to Previse. This technology, backed by funding from the National Institutes of Health (NIH) and decades of research, forms the foundation of Previse's commitment to combating GI diseases, including cancer. At the forefront is Esopredict®, a highly sensitive epigenetic test designed to predict the risk of progression to high-grade dysplasia or esophageal adenocarcinoma in patients with precancerous Barrett's esophagus.
About Castle Biosciences
Castle Biosciences (Nasdaq: CSTL) is a leading diagnostics company improving health through innovative tests that guide patient care. The Company aims to transform disease management by keeping people first: patients, clinicians, employees and investors.
Castle’s current portfolio consists of tests for skin cancers, Barrett’s esophagus, mental health conditions and uveal melanoma. Additionally, the Company has active research and development programs for tests in other diseases with high clinical need, including its test in development to help guide systemic therapy selection for patients with moderate-to-severe atopic dermatitis seeking biologic treatment. To learn more, please visit www.CastleBiosciences.com and connect with us on LinkedIn, Facebook, X and Instagram.
DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, MyPath Melanoma, DiffDx-Melanoma, TissueCypher, IDgenetix, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq are trademarks of Castle Biosciences, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning: the ability of the Previse acquisition to complement Castle’s current gastroenterology franchise; Castle’s growth initiatives; Castle’s ability to expand its offerings, address existing unmet needs and realize upstream opportunities; the closing of the acquisition of Previse on the agreed terms, or at all. The words “believe,” “can” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation: subsequent study or trial results and findings may contradict earlier study or trial results and findings or may not support the results obtained in these studies, including with respect to the discussion of our tests in this press release; actual application of our tests may not provide the aforementioned benefits to patients; and the risks set forth under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.
Investor and Media Contact:
Camilla Zuckero
281-906-3868
czuckero@castlebiosciences.com
FAQ
What companies are involved in the Castle Biosciences (CSTL) acquisition announced on May 5, 2025?
What technologies will Castle Biosciences gain from the Previse acquisition?
How does the Previse acquisition complement Castle Biosciences' existing business?
When is the Castle Biosciences-Previse acquisition expected to close?
What is the value of Castle Biosciences' acquisition of Previse?
