NeoGenomics, Inc. has announced that it has concluded an agreement with Power3 Medical Products, Inc. to form a joint venture Contract Research Organization (CRO). Power3 is an early stage company engaged in the discovery, development, and commercialization of protein biomarkers.
Under the terms of the agreement, NeoGenomics and Power3 will jointly own a CRO and begin commercializing Power3’s intellectual property portfolio by developing blood serum-based diagnostic tests and other services around one or more of the 523 protein biomarkers that Power3 has identified to date.
Power3 has agreed to license to the CRO all of its intellectual property on a non-exclusive basis for selected commercial applications as well as provide certain management personnel.
NeoGenomics will provide access to cancer samples, management, sales & marketing personnel, laboratory facilities and working capital.
NeoGenomics will own a minimum of 60% of the new CRO venture which is anticipated to be launched in the fourth quarter of FY ‘07. As part of the agreement, NeoGenomics will provide $200,000 of working capital to Power3 within fifteen days by purchasing a convertible debenture. NeoGenomics was also granted two options to increase its stake in Power3 to up to 60% of the fully diluted shares over the next 18-20 months.
Mr. Robert Gasparini, NeoGenomics’ President and Chief Scientific Officer, summarized this venture by saying, “Today, many chronic diseases are not diagnosable until a patient has had the disease for a significant period of time.”
Gasparini continued, “We believe that proteomics, along with our focus on genomics, are the two emerging fields that will give us the technology, tools and answers needed to bridge this gap to earlier detection. Power3 is an emerging force in the proteomics community, developing and validating a process for reproducing protein biomarkers, and we are delighted to partner with them in this venture. In addition, their initial focus on breast cancer ties in nicely with our own strategic interests.”