Nottingham early cancer detection company Oncimmune has signed a framework distribution agreement for an exclusive licence with Genostics Company, a Hong Kong registered group that is part of China-based Gene Group.
Genostics will market Oncimmune’s EarlyCDT technology in China, where cancer is the number one killer of both and women, with over 700,000 cases diagnosed annually.
The deal is expected to net £15.7m in the first six years of post-market entry, and £5m a year after that.
As part of the deal, Genostics will invest £10m into Oncimmune by buying shares in the company at a price of £1.56 per ordinary share, a 49% premium to the share price of 105p.
This will be allocated in two tranches, the first £7m following a General Meeting expected to be held later in January 2018, and the second (£3m) by 30 March 2018. As part of the deal, a representative from Genostics will also be appointed to the Oncimmune board – this will be announced once finalised.
Geoffrey Hamilton-Fairley, Chief Executive 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 Co. Limited, added “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.”