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NEW YORK, July 17 - PPD has given SurroMed an undisclosed cash payment and a range of cancer biomarkers in exchange for $24 million worth of SurroMed's senior preferred stock, the companies said today.
SurroMed said it intends to use PPD's biomarkers to take a stab at cancer diagnostics, and that it also plans to seek to partner related cancer therapeutic opportunities."
PPD has also bought biomarker-discovery services from SurroMed over the next four years, and will become SurroMed's "non-exclusive representative" for sales of additional biomarker-discovery services.
Terms of the transaction also call for SurroMed to relocate to PPD's facility in Menlo Park, Calif. The transactions are expected to close next month.
"We believe that the collaboration with PPD will allow SurroMed to achieve positive cash flow and sustainability and to expand our leadership position in the field of biomarker discovery," Gordon Ringold, CEO and chairman of SurroMed, said in a statement.