NEW YORK (GenomeWeb) – Canada's GeneNews has announced that the consulting group JTS Health Partners will take an equity stake in the firm. The parties have also signed a collaboration agreement for Atlanta-based JTS Health to help promote GeneNews' tests for cancer risk.
Under the terms of the agreement, JTS Health will attempt to increase adoption of GeneNews' tests and implement billing practices to improve revenue collection. The agreement has an initial term of five years and is renewable annually with mutual consent. The parties will also work to secure multi-year agreements with healthcare providers including hospitals, physician groups, and clinic networks.
Further terms of the agreement were not disclosed.
GeneNews's lead product is ColonSentry, a blood test to assess colorectal cancer risk. The Toronto-based firm also offers risk stratification tests in the US for colorectal, lung, and prostate cancers through its subsidiary, Innovative Diagnostics Laboratory (IDL),
The deal could help stabilize GeneNews, which has been seeking to restructure following difficulties with IDL, a joint venture with Cobalt Healthcare Consultants. In December, the firm terminated its license agreement with IDL for ColonSentry, borrowed $400,000, and laid off 16 IDL workers. Earlier this month, GeneNews announced an agreement to buy out Cobalt's stake and a plan to sell up to C$5 million ($3.9 million) in common stock in a private placement.