UK-based Oncimmune has signed a framework agreement with Genostics, a Chinese molecular diagnostics marketing and distribution firm, for an exclusive licence of its EarlyCDT platform designed for the early detection of cancer.
The agreement covers distribution, manufacturing and future development of products associated with the EarlyCDT platform in the People’s Republic of China.
The firms will initially focus on the EarlyCDT-Lung product, with plans to begin sale within 36 months of the date of the agreement, subject to approval from the China Food and Drug Administration (CFDA).
Genostics’ sister company GeneTech will carry out the manufacturing, marketing and distribution of EarlyCDT-Lung.
Under the terms of the agreement, Oncimmune is set to obtain minimum royalty payments of £15.7m on aggregate during the first six years after market entry.
The company will receive £10m investment from Genostics at a 49% premium, which is subject to the approval of shareholders.
Genostics chairman Dr Cheung To said: “This deal means we can now offer early detection of cancer, which augments our product portfolio in our specialised 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.”
Oncimmune and Genostics also intend to consider the transfer of manufacturing to China, along with further research and development to advance the EarlyCDT platform technology for new prevalent cancers.