RE: Oncimmune RNS Today28 Jun 2019 08:18
Over the next five years this agreement represents value to Oncimmune of up to $28 million of which approximately $7.2 million is the minimum volume-based revenues. The balance of approximately $20.8 million is represented by both cash lump sum payments, including $1 million for the sale of Oncimmune's US subsidiary's operations, and direct operating cost savings of approximately $2.2 million per annum, will lead to a material reduction in Oncimmune's monthly cash burn from 1 November 2019.
In the Board's opinion, strategic partnerships and other non-dilutive transactions, such as this agreement with Biodesix, presents the Group with line of sight to funding its current operations.
Dr Adam M Hill, CEO of Oncimmune commented: "In October 2018, I undertook to bring to investors a strategic partnership which fully realises the value of EarlyCDT Lung in the US, exhibiting a critical number of sales people, exclusive focus on a pulmonology sales point, and a complementary product portfolio. I believe in Biodesix we have found that strategic partner. Like us, Biodesix is committed to delivering solutions that span the continuum of care, but importantly, focuses exclusively on lung cancer. This agreement is designed to accelerate access for EarlyCDT Lung into the US market and creates a compelling new commercial partnership in lung cancer management.
"We are proud to be working with Biodesix, a company with a successful track record of commercialising three clinical diagnostic lung tests in the US. This will be the eleventh agreement we have signed for EarlyCDT Lung in the last 12 months, reinforcing a strong track record of delivering against the strategy of commercialising the EarlyCDT portfolio."
David Brunel, CEO of Biodesix commented: "By integrating both genomic and proteomic technologies, Biodesix is focused on enabling clinicians involved in nodule management and those treating lung cancer to improve patient management and patient outcomes while reducing unnecessary procedures and related side effects, while reducing costs. This partnership with Oncimmune, a global leader in autoantibody science, further strengthens our position as the leading lung cancer diagnostic solutions company in the US and initiates a collaboration to fully exploit the potential of EarlyCDT Lung in the US. The addition of EarlyCDT Lung to our portfolio completes our comprehensive solution for all patients with indeterminate lung nodules."
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