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CareDx, LabCorp Terminate Lupus Test Deal

NEW YORK (GenomeWeb) – CareDx and Laboratory Corporation of America have terminated a collaborative and licensing agreement covering a lupus flare predictor test, CareDx said in its Form 10-Q last week.

In September the two firms terminated the agreement to develop the lupus flare test — originally reached in 2012 — after completing the first phase of the collaboration in the first quarter of this year. As part of the agreement, CareDx licensed technology to LabCorp. Of the total arrangement terms, the license had a fair value of $1 million, CareDx said, and the partners would share the cost of developing the test, although LabCorp's share of the development cost was "subject to certain limits at each stage of the arrangement."

LabCorp paid CareDx a non-refundable and non-creditable upfront license fee payment of $1 million and a non-refundable and non-creditable payment of $250,000 for certain lupus samples. CareDx was also to receive royalties in the high-single digits on net sales of the test or other tests developed using the samples.

As part of the agreement to terminate the collaboration, CareDx is transferring and assigning to LabCorp 300 "SAGE 1" clinical samples, as well as other clinical data and documentation that CareDx gathered from patients during the discovery phase of the collaboration.

CareDx also is granting LabCorp a perpetual, non-exclusive, worldwide, royalty-free license to use any IP and data resulting from the collaboration for any purpose. In return, LabCorp will pay CareDx $500,000. No other royalties, milestone fees, or other fees will be payable by LabCorp.

CareDx went public during the summer. Last week, it reported a 16 percent jump in revenues to $6.7 million for the third quarter.

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