Fulgent Genetics finalizes $56.9 million deal to expand pathology and dermatopathology capabilities with Bako Diagnostics and StrataDx
Fulgent Genetics, Inc., a technology-driven company known for its strong laboratory services platform and growing therapeutic development efforts, has officially completed its previously announced acquisition of Bako Diagnostics and StrataDx. The transaction marks a significant step in the company’s broader strategy to expand its presence and capabilities in specialized diagnostic services, particularly within pathology and dermatopathology.
The announcement, made from the company’s headquarters in El Monte, California, confirms that the acquisition, first disclosed on December 22, 2025, has now been finalized. With this move, Fulgent further strengthens its position as a diversified diagnostics organization, combining advanced laboratory technologies with specialized clinical expertise.
Under the terms of the agreement, Fulgent acquired certain assets of Bako Diagnostics, a well-regarded pathology laboratory, and fully acquired StrataDx, a company recognized for its focus on dermatopathology. The total combined purchase price for the transaction was approximately $56.9 million in cash. This amount remains subject to standard post-closing adjustments, which are typical in transactions of this nature and may account for factors such as working capital changes or other financial reconciliations.
This acquisition aligns with Fulgent’s long-term growth strategy, which emphasizes expanding its diagnostic portfolio, increasing operational scale, and entering high-value specialty testing markets. By integrating the capabilities of Bako Diagnostics and StrataDx, the company aims to enhance its service offerings, particularly in areas that require specialized expertise such as skin-related diseases and pathology diagnostics.
Bako Diagnostics has built a reputation as a premier pathology laboratory, offering a range of diagnostic services that support physicians in identifying and managing various conditions. Its expertise in pathology complements Fulgent’s existing laboratory services, providing additional depth in diagnostic testing and clinical interpretation. The integration of Bako’s assets is expected to broaden Fulgent’s testing capabilities and strengthen its relationships with healthcare providers.
StrataDx, on the other hand, specializes in dermatopathology, a field focused on the diagnosis of skin diseases through laboratory analysis. Dermatopathology is a highly specialized area that combines elements of dermatology and pathology, requiring advanced techniques and experienced professionals. By acquiring StrataDx, Fulgent gains access to a niche but growing segment of the diagnostics market, where demand is driven by increasing awareness of skin conditions and the need for precise diagnostic tools.
The addition of these two entities is expected to create operational synergies for Fulgent. These may include improved efficiency through shared infrastructure, expanded test menus, and enhanced data capabilities. The company’s technology-driven approach to diagnostics could further amplify the value of these acquisitions by integrating advanced analytics, automation, and scalable processes into the newly acquired operations.
From a financial perspective, the transaction represents a strategic investment aimed at driving long-term revenue growth. While the immediate impact on financial performance will depend on integration timelines and operational adjustments, the acquisition is expected to contribute positively over time by expanding Fulgent’s customer base and increasing its presence in specialized diagnostic markets.
The transaction also reflects broader trends in the healthcare and diagnostics industry. There is a growing emphasis on precision medicine, where accurate and timely diagnostic information plays a critical role in guiding treatment decisions. Specialized laboratories, such as those focused on pathology and dermatopathology, are becoming increasingly important in this landscape. By acquiring Bako Diagnostics and StrataDx, Fulgent positions itself to capitalize on these trends and meet the evolving needs of healthcare providers and patients.
In addition to operational and strategic considerations, the transaction involved several advisory firms that played key roles in facilitating the deal. Piper Sandler & Co. served as the exclusive financial advisor to Fulgent, providing guidance on the financial aspects of the transaction. Legal counsel for Fulgent was provided by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., which assisted with structuring the deal and ensuring compliance with applicable regulations.
On the other side of the transaction, EV Health Partners acted as the exclusive financial advisor, representing the interests of the sellers. Legal counsel for Consonance Capital Partners, Bako Diagnostics, and StrataDx was provided by Latham & Watkins LLP. These advisors contributed to the negotiation and execution of the agreement, ensuring that the transaction was completed efficiently and in accordance with industry standards.
The successful completion of this acquisition highlights Fulgent’s ability to execute complex transactions and integrate new businesses into its existing operations. It also demonstrates the company’s commitment to expanding its footprint in the diagnostics sector through targeted acquisitions that align with its strategic objectives.
Looking ahead, Fulgent is expected to focus on integrating the acquired assets and operations into its broader organizational framework. This process will likely involve aligning systems, processes, and teams to ensure a seamless transition and maximize the benefits of the acquisition. Effective integration will be critical to realizing the anticipated synergies and achieving the company’s growth goals.
Furthermore, the acquisition may open up new opportunities for innovation. By combining the expertise and resources of Fulgent, Bako Diagnostics, and StrataDx, the company could develop new diagnostic tests, improve existing offerings, and explore advanced technologies such as molecular diagnostics and data-driven insights. These innovations could enhance the quality and efficiency of diagnostic services, ultimately benefiting patients and healthcare providers.
In summary, the completion of the acquisition of Bako Diagnostics and StrataDx represents a significant milestone for Fulgent Genetics. The transaction not only expands the company’s capabilities in pathology and dermatopathology but also reinforces its position as a technology-driven leader in the diagnostics industry. With a clear strategic vision and a focus on innovation and growth, Fulgent is well-positioned to leverage this acquisition to drive long-term value and continue its evolution in the rapidly changing healthcare landscape.
About Fulgent Genetics
Fulgent is a technology-based company with a well-established laboratory services business and a therapeutic development business. Fulgent’s laboratory services business includes technical laboratory and testing services and professional interpretation of laboratory results by licensed physicians. Fulgent’s therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. Fulgent aims to transform from a diagnostic business into a fully integrated precision medicine company.
About Bako Diagnostics
Bako Diagnostics is a premier national provider of specialty laboratory testing services which offers a comprehensive testing menu, including complete anatomic pathology services, proprietary molecular genetic testing, and peripheral neuropathy immuno-histochemical testing. Bako is primarily focused on providing clients with unmatched sector-specific expertise and physician support services.
About StrataDx
StrataDx is a national diagnostic laboratory located in Lexington, Massachusetts dedicated to providing best-in-class pathology services to save lives. Led by dermatopathology experts, StrataDx provides advanced diagnostics for a wide range of skin conditions including melanocytic and soft tissue lesions, dermatoses, and lymphomas. Board-certified oral pathologists represent decades of expertise across a wide range of clinical specialties. StrataDx is considered a leader in testing for the dermatology market.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include statements about, among other things: the efficiency or quality of services and testing, momentum, trajectory, vision, future opportunities and future growth of Fulgent’s testing and laboratory services, technologies and expansion, the future benefits of Fulgent’s research and development efforts, Fulgent’s identification and evaluation of opportunities and its ability to capitalize on opportunities, and Fulgent’s ability to continue to scale and grow its business.
Forward-looking statements are statements other than historical facts and relate to future events or circumstances or Fulgent’s future performance, and they are based on management’s current assumptions, expectations, and beliefs concerning future developments and their potential effect on Fulgent’s business, including the acquired businesses and assets of Bako Pathology and StrataDx. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. These risks and uncertainties include, among others: Fulgent’s level of success in establishing and obtaining the intended benefits from partnerships, strategic investments, joint ventures, other relationships or acquisitions and the risks related to potential assumed liability and integration challenges in connection with these partnerships, strategic investments, joint ventures, other relationships and acquisitions (which expressly include the Bako Diagnostics and StrataDx acquisitions); the market potential for, and the rate and degree of market adoption of, Fulgent’s tests (and following and assuming the completion of the acquisitions, Bako and StrataDx’s tests); Fulgent’s ability to maintain turnaround times and otherwise keep pace with rapidly changing technology; Fulgent’s ability to maintain the low internal costs of its business model; Fulgent’s ability to maintain an acceptable margin; risks related to volatility in Fulgent’s results, which can fluctuate significantly from period to period; risks associated with the composition of Fulgent’s customer base, which can fluctuate from period to period and is often comprised of a small number of customers that account for a significant portion of Fulgent’s revenue; Fulgent’s level of success in obtaining coverage and adequate reimbursement and collectability levels from third-party payors for its tests and testing services; the success of Fulgent’s development efforts, including Fulgent’s ability to progress its candidates through clinical trials on the timelines expected; Fulgent’s compliance with the various evolving and complex laws and regulations applicable to its business and its industry; and Fulgent’s ability to protect its proprietary technology and intellectual property. As a result of these risks and uncertainties, forward-looking statements should not be relied on or viewed as predictions of future events.
The forward-looking statements made in this press release speak only as of the date of this press release, and Fulgent assumes no obligation to update publicly any such forward-looking statements to reflect actual results or to changes in expectations, except as otherwise required by law. Fulgent’s reports filed with the U.S. Securities and Exchange Commission, or the SEC, including its annual report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, and the other reports it files from time to time, including subsequently filed annual, quarterly and current reports, are made available on Fulgent’s website upon their filing with the SEC. These reports contain more information about Fulgent, its business and the risks affecting its business.
