US-based Co-Diagnostics and DNA Logix have reached an agreement to set up a joint venture, Co-Diagnostics HBDC, which will sell diagnostic devices to high burden developing countries (HBDC).
Financial details of this agreement have not been disclosed.
In the high burden developing countries, Co-Diagnostics HBDC will market both diagnostic services and devices, which are based on real-time PCR testing technology developed by DNA Logix and licensed to the JV firm.
Co-Diagnostics is a DNA testing company and recently purchased a host of technologies from DNA Logix, which will be used by the joint venture firm.
DNA Logix uses mathematics to develop new kinds of diagnostic tests, usually with high improvements in performance.
Though the developing countries bear 90% of the burden of diseases in the world, currently only 10% of the research and development is dedicated to controlling them.
DNA testing, such as real-time PCR, is highly recommended in order to exactly and rapidly diagnose diseases such as tuberculosis.
According to World Health Organization estimates, one third of the world's population is afflicted with tuberculosis, with than 95% of cases from developing countries.
Despite this, the high costs of not just the DNA tests but also of the equipment to conduct these tests make it difficult for deployment in these countries.
Co-Diagnostics president Dwight Egan said that the business models that are currently used for diagnostic testing in the US are not the most effective business models in other countries.
"We are excited to create an entity with the tools and focus necessary to solve problems internationally," said Egan.
DNA Logix CEO Dr Brent C Satterfield noted that there is a lot of unmet need in the world.
"We are glad that Co-Diagnostics is engaged in this effort, and we believe that innovative testing technologies, combined with forward-thinking business models, will allow us to reach a much larger number of people," Satterfield said.