Early cancer detection company Oncimmune Holdings has signed a framework agreement for an exclusive licence with Hong Kong registered Genostics.
The agreement will see the Hong Kong firm distribute, manufacture and develop all products related to Oncimmune’s EarlyCDT® platform for the People’s Republic of China, with an initial focus on EarlyCDT®-Lung.
Cancer is the leading cause of death in China and lung cancer is the number one killer of both men and women with over 700,000 cases diagnosed annually.
Genostics will start to sell EarlyCDT®-Lung within 36 months, subject to China FDA approval, although both parties expect this to be sooner.
Oncimmune will receive a royalty of 8% on the gross revenue subject to minimum royalty payments over the first six years post-market entry of £15.7 million on aggregate and £5 million per year thereafter.
As part of the framework agreement, Genostics has agreed, subject to Shareholder approval, to invest £10m in Oncimmune by way of subscription for 6,410,256 new ordinary shares.
Geoffrey Hamilton-Fairley, CEO of Oncimmune, said: “Oncimmune continues to deliver on our stated strategy at the time of the IPO; a key part of this was a commercial agreement for China.
“Today, we are delighted to have signed an agreement for the EarlyCDT® platform with Genostics for the People’s Republic of China, a partner we have confidence has the reach to deliver on this very large market opportunity.
“We look forward to working with them and believe the funds from the equity subscription of this deal will unlock further opportunities across indications as well allowing us to develop new technologies that will result in more lives being saved, at the same time as money is saved for healthcare systems.”
Dr Cheung To, chairman, Genostics, said: “Genostics is delighted to sign this agreement with Oncimmune and we are excited by the prospect of commercialising the earlyCDT®platform in the People’s Republic of China.
“The test has proven it can detect cancer up to four years earlier than other methods and this has the potential to significantly improve the outcomes for cancer patients through early detection of the disease and by enhancing the treatment pathway.
“This deal means we can now offer early detection of cancer which augments our product portfolio in our specialized area of pathology and oncology.
“The EarlyCDT® platform is complementary to our current molecular diagnostic product line which uses the latest PCR, sequencing and microarray technologies and, by combining forces with Oncimmune, we will accelerate the technological and commercial development of the EarlyCDT® platform, which will ultimately benefit more Chinese patients.”