NEW YORK (GenomeWeb News) – China Medical Technologies said yesterday that it had entered into a definitive agreement to acquire a molecular diagnostic test for human papillomavirus and an analysis platform from Molecular Diagnostic Technologies for $345 million.
The Beijing-based firm said that it will acquire the HPV-DNA Biosensor Chip and a surface plasmon resonance-based system for detecting the virus.
According to CMT, the label-free DNA chip can identify each of the 24 distinctive common HPV genotypes, including 16 high-risk genotypes and 8 low-risk genotypes. The firm said that it can also rapidly identify mixed HPV infection and can be used to guide individual therapy and vaccination.
CMT expects to complete the asset acquisition in either this coming December or January. It said that it expects to use existing cash holdings to pay for the technology.
The company plans to bundle sales of the HPV chip with its FISH probes to detect both HPV infection and human telomerase gene amplification “to achieve early diagnosis of cervical cancer and to provide treatment guidance,” Xiaodong Wu, chairman and CEO of CMT, said in a statement.
He estimated that the market potential for the HPV chip in China is around $700 million. The firm expects the chip to generate revenues of roughly $23.6 million to $26.5 million in 2009.