NEW YORK (GenomeWeb News) – Chinese biomedical testing firm Mingyuan Medicare Development announced that its wholly own subsidiary SHMY HealthDigit Biochips has entered into an agreement to purchase 70 percent of Shanghai Yuanqi for CNY354 million ($55 million).
SHMY will pay CNY225 million in cash and issue about 327 million shares of Mingyuan stock at HK$.478 per share, totaling CNY129 million, for the deal.
Shanghai Yuanqi was founded in January 2010 and develops molecular diagnostic kits for leukemia, lymphoma, and individualized cancer therapy, according to Mingyuan. It added that Shanghai Yuanqi has developed a DNA sequencing and testing method for the analysis of circulating tumor cells from peripheral blood of cancer patients that provides insight into gene mutations.
The method involves the integration of gene mutation information, gene profile analysis, and application of targeted therapies and can be used "to provide accurate and updated information of gene mutation for those terminal cancer patients who would not be able to provide any physical cancer tissue sample as they are not fit for surgery," Mingyuan said in a statement.
Shanghai Yuanqi has created a database of more than 4,000 cases of cancer patients, the first of its kind in China, Mingyuan said. During 2010, Shanghai Yuanqi posted CNY872,600 in revenues and a loss of CNY668,300.
Mingyuan is based in Hong Kong and its first product was the Protein Chip System for Multi-tumor Marker Detection, or C-12, according to its website. The chips are its most profitable product, and the company said that the purchase of Shanghai Yuanqi will allow it to "further strengthen its cancer-related testing kits from general cancer screening, which is offered by the C12 protein chips … to specific testing kits for various specific cancers, leukemia and lymphoma."