Precision Therapeutics and Med BioGene Partner to Commercialize LungExpress Dx™
Product News Mar 03, 2011
Precision Therapeutics, Inc. and Med BioGene Inc. has announced a commercialization, license and research reimbursement agreement that provides Precision with exclusive global rights to develop and commercialize LungExpress Dx™.
LungExpress Dx™ is a proprietary gene expression-based test to improve upon staging for identifying those patients with early-stage non-small-cell lung cancer (NSCLC) who, following surgical removal of their tumor, are at higher and lower risks of mortality. In an initial study of patient specimens from the National Cancer Institute of Canada Clinical Trials Group JBR.
10 trial, published in the Journal of Clinical Oncology, patients classified by LungExpress Dx™ as higher risk benefited from adjuvant chemotherapy, and those classified as lower risk did not benefit and may have experienced a detrimental effect from adjuvant chemotherapy. LungExpress Dx™ is expected to provide better-informed and personalized treatment decisions to assist in the selection of patients for adjuvant chemotherapy.
"This agreement to commercialize LungExpress Dx™ underscores Precision's ongoing commitment to improve the outcomes of cancer patients by providing personalized medicine solutions that aim to increase quality of life and cancer survival rates," said Sean McDonald, Precision's President and Chief Executive Officer.
McDonald continued, "LungExpress Dx™ will be a synergistic and important addition to ChemoFx®, our flagship test. LungExpressDx™ identifies early stage patients who have a poor prognosis and may benefit from chemotherapy and ChemoFx® quantifies an individual patient's probable tumor response to various chemotherapeutic and biologic agents."
"Given Precision's long-established leadership in the personalized medicine market generally, and lung cancer specifically, we believe that they are ideally positioned to advance LungExpress Dx™," said Erinn Broshko, Chief Executive Officer of MBI. "We have undertaken a thorough strategic review process and, in selecting Precision as our commercial partner, believe that this collaboration will provide increasing and significant value to MBI shareholders as Precision executes on its commercial strategy. Importantly, we are moving closer to providing NSCLC patients and doctors with an important tool to address a critical unmet need."
Under terms of the agreement, Precision will pay to MBI within 120 days of closing license fees and research reimbursement of US$1.6 million. In addition, MBI is eligible to receive up to US$1.0 million in payments based on achievement of certain milestones associated with the development and commercialization of LungExpress Dx™.
Also, MBI will receive royalty payments based on a market percentage rate of Precision's future revenues associated with the commercialization of LungExpress Dx™ or any other products incorporating MBI's technology. Precision will also cover certain expenses of MBI incurred in relation to the proposed transaction.
Precision will be responsible for all future costs associated with the development and commercialization of LungExpress Dx™ and the parties may undertake co-marketing arrangements involving LungExpress Dx™.
The closing of the agreement is subject to customary conditions and includes approval of the transaction by the MBI shareholders at a special meeting to be announced, receipt of certain assurances from the University Health Network and MBI settling its outstanding debt with creditors.