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(Alliance News) - Oncimmune Holdings PLC on Friday said it has completed its US strategic collaboration agreement over the EarlyCDT Lung test with Biodesix Inc.
The strategic commercialisation agreement between the two firms was announced in late June an concerns Oncimune's EarlyCDT Lung blood test for lung cancer.
Under the terms of the agreement, Biodesix has acquired Oncimmune's CLIA laboratory facilities in Kansas for USD1.0 million. This will be paid in quarterly USD250,000 installments. This is expected to enhance Oncimmune's cash position and cut down on US operationg costs - which came to USD3.2 million in the last 12 months.
Oncimmune has granted Bidesix an option to commercialise EarlyCDT Lung as a screening diagnostic for lunch cancer in the US for a "further significant cash payment".
Overall, the commercialisation deal is worth up to USD28 million over five years to Oncimmune - USD7.2 million from minimum volume-based revenue plus another USD20.8 million of cash lump payments like the USD1,0 million sale of the operations of Oncimmune's US subsidiary - plus the screening option.
Adam Hill, chief executive at Oncimmune, said: "We are delighted to be working with Biodesix, a company with a successful track record of commercialising clinical diagnostic lung tests in the US and dedicated to improving patient management and outcomes. Biodesix is focused on extending the utility of EarlyCDT Lung to screening in the US, and this partnership, which fully realises the value of EarlyCDT Lung, will accelerate market access and save lives through earlier detection of lung cancer.
"This partnership and other agreements announced this year, demonstrate our ability to deliver on the core objective to drive organic growth through commercial collaborations. In addition, we have secured further funding through a credit facility arrangement, which puts us in a strengthened cash position to deliver on our three-year forward strategy."
Shares in Oncimmune were up 3.1% at 66.00 pence in London on Friday afternoon.
By Anna Farley; annafarley@alliancenews.com
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