NEW YORK, Aug. 3 – Biotech holding company Techne has acquired a 39 percent interest in Discovery Genomics and rights to develop antibodies and immunoassays for proteins targets that Discovery Genomics discovers, Techne said on Friday.
The agreement allows Techne exclusively to sell products based on Discovery Genomics’ discoveries in the research market royalty-free. Techne may also opt to sell similar products in the diagnostic market with obligations to pay royalties to Discovery Genomics.
Techne said in a statement that the company would classify a portion of Discovery Genomics’ losses as a Techne research expense. Techne predicted those losses would not exceed $1 million during the first year, and $2 million during the second and third year.
Techne also obtained warrants to acquire additional equity in Discovery Genomics.
Financial details of the deal were not disclosed.
Minneapolis, Minn.-based Techne controls Research and Diagnostic Systems and R&D Systems, headquartred in Abingdon, UK. Both companies manufacture and distribute research and diagnostic biotechnology products.
Discovery Genomics, also based in Minneapolis, has licensed gene knock-down and transposon technology from the University of Minnesota for applications in functional genomics and drug discovery.