Changes in Capital Market Preferences sees return of China IP Rights

Following termination of a partnership agreement with Genostics Company, the intellectual property and distribution rights for EarlyCDT® technology in the People’s Republic of China (PRC) and Hong Kong (HK), has returned to immunodiagnostics group Oncimmune Holdings, (Nottingham, UK).

The exclusive Chinese rights to EarlyCDT products in the PRC and HK were out-licenced to Genostics in Jan 2018, when the companies collaborated on development of a blood test for the detection of EGFR-positive non-small cell lung cancer (NSCLC), prevalent in Greater China and Asia-Pacific.

Access to China and US capital markets

Oncimmune intends to use data from a multi-centre study on this Asia-specific lung panel, which was due for completion in China in the first half of this year, to seek approval by the China National Medical Products Administration (NMPA) for the use of the Asia-specific lung cancer test in the PRC. It will also explore options available to it to access the US capital markets in the near term. 

Licencing Agreements upheld

Oncimmune is to receive payment of royalties under the existing Technology Licencing Agreement and has agreed to pay a fixed amount for the return of the IP and distribution rights, with the majority of the value of the consideration being conditional on fixed future events. Genostics has also agreed to a lock-in of its remaining shareholding in Oncimmune (currently 4.73 per cent. of the issued share capital) for a period of 12 months from 6 May 2021, except under certain limited exceptions.

Dr Adam M Hill, CEO of Oncimmune said: “We are grateful for the collaboration with Genostics and its parent company, Gene Group Holdings Ltd, over the past three years and are pleased with the progress that has been made with our Asia-specific lung panel. However, as both companies consider their future on different equity capital markets, the continuing success of the EarlyCDT product portfolio, both in and outside of PRC and HK, requires Oncimmune to own the IP and distribution rights. We are delighted that Genostics has agreed to continue to participate in Oncimmune’s success as a shareholder and Oncimmune looks forward to progressing its market access plans imminently.”

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