Horizon Discovery Group plc has announced that it has signed development agreements with three major developers of companion diagnostic tests worth an initial c$3.3 million (c£2.2 million).
The agreements will see the Company developing new and/or supplying existing reference standards for the development and validation of new companion diagnostic tests, and for the potential inclusion in on-market diagnostic kits under Original Equipment Manufacture (OEM) agreements.
Horizon’s reference standards are used to benchmark the accuracy and effectiveness of diagnostic tests with c$3.2 million (c£2.1 million) of revenue to be recognized in 2015 and the remainder in 2016.
Dr Darrin M Disley, Chief Executive Officer, Horizon Discovery Group, said: “For these prominent diagnostic companies to choose to collaborate with Horizon underlines our expertise and leadership in the creation of reliable diagnostic reference materials, increasingly critical for precise cancer diagnosis. This represents a continuation of our progress in creating a greater network of trusted partnerships and in finding new channels to market for our products.
“These deals are part of larger collaborations with the companies involved and they are expected to lead to additional revenue over time.”
The three partnerships are in line with Horizon’s strategy of driving sustainable, scalable core revenue growth. Reagent development and supply of materials for diagnostic test validation programmes provide near-term revenue while opening up avenues for future OEM relationships. Such relationships deliver visible and predictable revenues as Horizon’s reference standards are integrated into the diagnostic work-flows and kits of partners.
Under these agreements, which include an extension of a pre-existing program, Horizon will provide reference standards for genomic and immunohistochemistry based standards.