NEW YORK (GenomeWeb News) – Rosetta Genomics today said that it has settled an outstanding arbitration with Prometheus Laboratories regarding commercialization rights to Rosetta's microRNA-based tests.
Under the terms of the settlement, Rosetta has regained US commercial rights to its miRview mets, miRview squamous, and miRview meso tests. The Rehovot, Israel-based firm will pay Prometheus $3.1 million over the next 18 months, with an initial payment of $1.2 million due on Dec. 2.
The miRview meso test differentiates lung cancer from mesothelioma; miRview mets is designed to determine the source of cancers of unknown primary origin; and miRview squamous is designed to differentiate squamous from non-squamous non-small cell lung cancer. Rosetta offers the tests through its Philadelphia-based CAP-accredited, CLIA-certified lab.
The initial agreement between the firms was signed in April 2009. Under terms of that pact, San Diego-based Prometheus licensed US rights to the Rosetta tests, and it purchased 2 million shares of Rosetta stock at $4 per share. The firms also had intended to collaborate on the development of two new microRNA-based tests for gastroenterology conditions.
"We appreciate the initial commercial launch efforts undertaken by Prometheus for these three cancer diagnostic tests, especially as product demand has doubled in recent months," Rosetta President and CEO Kenneth Berlin said in a statement. "As market interest in microRNA-based diagnostics and biomarkers has grown considerably since the time we signed the agreement with Prometheus, regaining US commercial rights to these tests provides Rosetta with a significant opportunity to develop potential new partnering and co-promotional agreements for some or all of our microRNA-based oncology diagnostics."