NEW YORK (GenomeWeb News) – Med BioGene today said that it has signed a licensing agreement with Precision Therapeutics covering its LungExpress Dx gene expression-based test for lung cancer.
LungExpress has been developed to identify patients with early-stage non-small-cell lung cancer who, following surgical removal of their tumor, are at higher and lower risks of mortality.
The test and the alliance announced today are at the center of a recent lawsuit filed by Signal Genetics, which has accused Vancouver, British Columbia-based Med BioGene of fraud and Pittsburgh-based Precision Therapeutics of tortious interference. New York City-based Signal said that its suit stems from Med BioGene allegedly breaching an agreement to provide Signal with "a not less than ten-year exclusive, worldwide license to use MBI's LungExpress Dx technology."
Under the terms of the pact announced today, Precision has gained exclusive rights to LungExpress Dx. It will pay Med BioGene license fees and research reimbursement of $1.6 million within 120 days of closing of the agreement. In addition, Med BioGene is eligible to receive up to $1 million in payments based on achievement of certain milestones associated with the development and commercialization of LungExpress Dx.
In addition, Med BioGene will receive royalty payments based on a market percentage rate of Precision's future revenues associated with commercialization of LungExpress Dx or any other products incorporating Med BioGene's technology. Precision also will cover certain expenses of Med BioGene incurred in relation to the proposed transaction and take on further costs associated with the development and commercialization of LungExpress Dx.
The firms said that they also may undertake co-marketing arrangements for the test.