Pittsburgh's life sciences community is rejoicing that one of its own, Precision Therapeutics, is merging with a subsidiary of Greenwich, Conn.-based Oracle Healthcare Acquisition Corp.

Precision, which develops and sells tests to help doctors manage cancer treatment, had announced plans in the summer for an initial public offering that could have raised up to $80.5 million. The merger, announced last week, should provide Precision with "well above that number," said Chief Financial Officer David R. Heilman, as Oracle is bringing $120 million to the table. It also will provide an entry to the capital markets: Oracle, created in 2005 for the express purpose of acquiring a healthcare-related company, is expected to apply for a Nasdaq listing after the deal closes.

Mr. Heilman said the deal is expected to close in the first quarter of 2008, pending approval from the Securities and Exchange Commission and Oracle shareholders.

"It's a win for the region," said Matt Stadler, managing director of the life sciences network at the Pittsburgh Technology Council, because transactions like this one bring in dollars that would otherwise flow elsewhere. That is also the case in the recently announced acquisition of Marshall-based Renal Solutions Inc. by the German firm Fresenius Medical Care.

But perhaps even more important than the cash is the flash -- the shine that such deals add to Pittsburgh's reputation. They "add to the collective international consciousness of Pittsburgh as a center of excellence in these types of technologies," Mr. Stadler said.

Precision Therapeutics, like Renal Solutions, is remaining here, and its president and chief executive officer, Sean C. McDonald, will retain those titles in the combined company and add the title of director.

Richard Lunak, president and chief executive officer of Innovation Works, said the Precision merger "is one more sign that our region is able to create high-growth companies that are recognized by investors and acquirers outside of Pittsburgh."

Innovation Works was an early investor in Precision, providing $176,000 from the company's beginning in 1995 to 1997.

Since its founding by a group of University of Pittsburgh scientists, the company has attracted about $75 million from investment firms including Adams Capital Management, Birchmere Ventures, Draper Triangle Ventures and Quaker bioVentures.

Precision's patented product, ChemoFx, analyzes how cancerous tumor cells react to specific drugs so physicians can determine how patients will respond to treatment.