NEW YORK, July 2 – DeCode Genetics estimated Monday that the total value of its previously announced diagnostics collaboration with F. Hoffmann-LaRoche could amount to $300 million.
The two companies, which in March signed a letter of intent to enter a five-year deal to develop DNA-based diagnostics, completed the definitive agreement on Friday. Under the terms of the agreement, Roche of Basel, Switzerland, earlier said it would provide research funding and milestone payments to DeCode, and would share product royalties with the Reykjavik, Iceland-based genomics company.
The deal will allow the companies to capitalize on DeCode’s expertise in population genomics as well as Roche’s expertise in the development and marketing of molecular diagnostics, DeCode said.
This alliance follows a four-year collaboration DeCode established with Roche in 1998 to discover novel disease-related genes. Through that deal DeCode has provided Roche with gene targets related to Alzheimer’s disease, arterial disease of the arms and legs, osteoporosis, pre-eclampsia, schizophrenia, and stroke. Roche has used these gene targets in developing new medications.
Together the companies now plan to develop DNA-based diagnostics, screening products to determine a person’s predisposition to disease as well as point-of-care informatics products that would be designed to help doctors assess the results of DNA diagnostic tests.
"We are very excited to be able to bring together our gene research and bioinformatics know-how with the development and marketing expertise of the world's leading diagnostics company,” Kari Stefansson, CEO of DeCode genetics, said in a statement.
“We believe that these tools and decision-support systems will become a fundamental component of future medicine, and that this alliance will create significant value for DeCode going forward," he said.
The companies said that they expect the global genomic diagnostics market to grow to $4 billion over the next 10 years.