NEW YORK (GenomeWeb) – Fulgent Genetics this week said in a regulatory document that it has formed a joint venture in China to offer genetic testing services in that country.
In a document filed with the US Securities Exchange Commission, Fulgent said it has formed a joint venture with Chinese firms Xilong Scientific and Fuzhou Jinqiang Investment Partnership (FJIP) to establish Fujian Fujun Gene Biotech. Under the agreement Fulgent will provide to the JV genetic sequencing and other equipment costing no more than about RMB60 million ($8.7 million) over a three-year period.
Fulgent will have a 30 percent ownership in Fujian Fujun Gene Biotech. Xilong will contribute RMB102 million to the JV and own 51 percent of it, and FJIP will contribute RMB19 million to the JV in return for a 19 percent ownership stake.
The joint ownership has a term of 20 years, and inventions, patents, and know-how developed by the JV will be owned by the JV, Fulgent said in its SEC document. The JV will have three directors, one appointed by Fulgent and two by Xilong.
Fulgent and the JV have also entered into a technical know-how license agreement, under which Fulgent has granted the JV a license to use certain of Fulgent's clinical molecular diagnostic gene detection technology, related software, and Fulgent's proprietary reference library of genetic information. The licensing deal expires on Dec. 31, 2018 and may be extended by mutual agreement of the parties.