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Cepheid and Canada s Infectio Diagnostics Kill JV, Pen New Partnership

NEW YORK, Nov. 6 (GenomeWeb News) - Cepheid and Quebec-based Infectio Diagnostics have ended their ARIDIA joint venture, saying it "no longer fulfilled the strategic objectives" of either company. The companies have also created a new partnership.


The partners said that IP and know-how developed between them during the course of the collaboration will be shared without rights to sublicense or assign the rights to a third party. However, any intellectual property relating to Cepheid's GeneXpert system or cartridge is not included in collaboration IP, and is exclusively retained by Cepheid.

Terms of the new agreement calls for Cepheid to receive non-exclusive worldwide distribution rights to IDI assays for Group B Streptococcus, methicillin resistant staph aureus, and vancomycin resistant enterococcus that have been configured for use with Cepheid's Smart Cycler system. IDI will retain exclusive distribution rights for these assays in Canada.


The Group B Streptococcus assay - IDI Strep B - is currently sold in the United States and Canada, and IDI has filed the methicillin resistant staph aureus assay with the US Food and Drug Administration and Health Canada, the company said. Cepheid will be able to continue to purchase the distributed assay kits from IDI at an undisclosed agreed transfer price.

The new deal also calls for IDI to receive worldwide rights to distribute Cepheid's Smart Cycler system for use with IDI assays. The Canadian company will be able to purchase the Smart Cyclers from Cepheid at an undisclosed agreed transfer price.

Cepheid will also receive a non-exclusive, royalty-bearing license to apply gene sequences held by IDI for Group B Streptococcus, methicillin resistant staph aureus, and vancomycin resistant enterococcus in order to develop and commercialize its own assays, which would be applied to its GeneXpert system.

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