Oncocyte (NSDQ:OCX) announced today that it completed its acquisition of molecular diagnostics company Chronix Biomedical.
Irvine, Calif.-based Oncocyte’s acquisition includes the intellectual property and technology for Chronix’s TheraSure copy number instability (CNI) monitor test for immune therapy monitoring, according to a news release. Oncocyte also gains organ transplant technology and the associated patent portfolio developed by Chronix.
Under an amended merger agreement, Oncocyte delivered closing consideration and paid off assumed liabilities reaching approximately $4.25 million in cash and $3 million in common stock (about 591,000 shares). The company also agreed to pay an additional $2.5 million in liabilities by July 2022.
Additionally, Oncocyte will pay a revenue share on the net collected revenues for certain tests and services over specific periods, while paying a combination of cash or common stock worth up to $14 million if certain milestones are reached over a 10-year timeframe, subject to offset by Oncocyte for liabilities paid in excess of $8.25 million.
The acquisition includes Chronix’s lab in Germany and its Europe-based development and business team and is expected to produce a launch of the CNI test as a pharma service in Europe from Germany by the end of the current quarter.
Once technology is transferred to U.S. facilities, Oncocyte plans to launch the test for research use only in domestic immune therapy clinical trials during the fourth quarter of 2021. Oncocyte expects the first indication to be for lung cancer before expanding to other cancer types.