NEW YORK (GenomeWeb) – DiagnoCure today announced an asset purchase agreement in which it will sell its PCA3 prostate cancer biomarker to Hologic's wholly-owned subsidiary Gen-Probe.
Gen-Probe will acquire all assets related to the biomarker as well as right of first refusal to license DiagnoCure's high-volume multi-marker prostate cancer test.
Hologic currently holds exclusive worldwide rights to PCA3 from DiagnoCure via its subsidiary Gen-Probe. Last year DiagnoCure urged Hologic to step up commercialization efforts or relinquish the rights to PCA3 back to DiagnoCure.
Gen-Probe will pay approximately C$6.5 million (US$4.7 million) for the test, consisting of C$5.5 million in cash to DiagnoCure and the repurchase of 4,900,000 series A convertible preferred shares of DiagnoCure valued at C$1 million.
The transaction will cancel all of the preferred shares issued by DiagnoCure. The firm's outstanding securities will consist solely of common shares, enabling future business arrangements for additional assets, such as the Previstage GCC colorectal cancer test and the PCP multi-marker prostate cancer test, the company said in a statement.
"The proposed transaction is a beneficial first step in improving shareholder value while additionally providing an immediate liquidity opportunity for current shareholders," DiagnoCure Chairman Jacques Simoneau said in today's statement. "We are confident that the remaining assets held by the Corporation provide business opportunities for the right partners."
DiagnoCure will submit the agreement to shareholders at a special meeting in February.