TIDMONC
RNS Number : 6376A
Oncimmune Holdings PLC
02 January 2018
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Oncimmune Holdings plc
("Oncimmune" or the "Company")
Framework for an Exclusive Licence of EarlyCDT Technology to
Genostics Co. Ltd for China, a Future Collaboration and a GBP10m
Investment in Oncimmune
- Licence agreement of EarlyCDT Technology for China, with initial focus on EarlyCDT(R)-Lung
- Minimum royalty payments total GBP15.7 million in first six years post market entry
- Provides access to market in which lung cancer is the number
one killer, with over 700,000 cases diagnosed annually, and 350
million adult smokers in 2015
- GBP10m equity investment in Oncimmune at 49% premium, subject to Shareholder approval
Nottingham, UK - 2 January 2018: Oncimmune Holdings plc (AIM:
ONC.L), a leading early cancer detection company developing and
commercialising its proprietary EarlyCDT(R) platform technology,
today announces that it has signed a framework agreement for an
exclusive licence with Genostics Company Limited ("Genostics"), a
Hong Kong registered company part of the Gene Group Holdings
Limited group ("GGH"), a leading R&D, manufacturing, marketing
and distribution Company in China focused on immunological and
molecular diagnostic products in the fields of oncology, pathology,
hematology and cytogenetics. The agreement is for the distribution,
manufacturing and future development of all products related to
Oncimmune's EarlyCDT(R) platform for the People's Republic of
China, with an initial focus on EarlyCDT(R)-Lung. Cancer is the
leading cause of death in China and a major health problem and lung
cancer is the number one killer of both men and women with over
700,000 cases diagnosed annually. Early diagnosis has the potential
to make a significant impact as mortality increases sharply with
advanced disease.
The framework sets the terms for the licence agreement under
which Genostics will start to sell EarlyCDT(R)-Lung within 36
months of the date of the agreement, subject to China FDA ("CFDA")
approval, although both parties expect this to be sooner. Oncimmune
will receive a royalty of c.8% on the gross revenue subject to
minimum royalty payments over the first six years post market entry
of GBP15.7 million on aggregate and GBP5 million (index linked) per
year thereafter.
As part of the framework agreement, Genostics has agreed,
subject to Shareholder approval, to invest GBP10m in Oncimmune by
way of subscription for 6,410,256 new ordinary shares at a price of
GBP1.56 per ordinary share, a 49% premium to the share price of
105p at market close on 29 December 2017 ("Genostics
Subscription"). This will be allocated in two tranches, the first
GBP7m following a General Meeting expected to be held later in
January 2018, and the second (GBP3m) by 30 March 2018. The
exclusive technology licence agreement will be signed following the
first subscription. Application will be made for the New Ordinary
Shares to be admitted to trading on AIM ("Admission").
It has also been agreed that a representative from Genostics
will be appointed to the Board of Directors of Oncimmune. An
announcement will be made once this is finalised.
As part of the agreement with Genostics, GeneTech(Shanghai), a
subsidiary of GGH, will be responsible for the manufacturing,
marketing and distribution of EarlyCDT(R)-Lung. In addition to this
and in collaboration with Oncimmune, a potential to transfer of
manufacturing to China for that market and the rest of the world
will be explored, as well as research and development to progress
the Oncimmune EarlyCDT(R) platform technology into new areas of
prevalent cancers.
Geoffrey Hamilton-Fairley, CEO of Oncimmune, commented:
"Oncimmune continues to deliver on our stated strategy at the time
of the IPO; a key part of this was a commercial agreement for
China.
"Today, we are delighted to have signed an agreement for the
EarlyCDT(R) platform with Genostics for the People's Republic of
China, a partner we have confidence has the reach to deliver on
this very large market opportunity. We look forward to working with
them and believe the funds from the equity subscription of this
deal will unlock further opportunities across indications as well
allowing us to develop new technologies that will result in more
lives being saved, at the same time as money is saved for
healthcare systems."
Dr. Cheung To, Chairman, Genostics Co. Limited, "Genostics is
delighted to sign this agreement with Oncimmune and we are excited
by the prospect of commercialising the EarlyCDT(R)platform in the
People's Republic of China. The test has proven it can detect
cancer up to four years earlier than other methods and this has the
potential to significantly improve the outcomes for cancer patients
through early detection of the disease and by enhancing the
treatment pathway.
"This deal means we can now offer early detection of cancer
which augments our product portfolio in our specialized area of
pathology and oncology. The EarlyCDT(R) platform is complementary
to our current molecular diagnostic product line which uses the
latest PCR, sequencing and microarray technologies and, by
combining forces with Oncimmune, we will accelerate the
technological and commercial development of the EarlyCDT(R)
platform, which will ultimately benefit more Chinese patients."
General Meeting
The Company will be convening a General Meeting for the purpose
of considering and, if approved, passing resolutions to provide the
directors with the authority to issue the ordinary shares under the
Genostics Subscription. Further information regarding the date,
timing and location, will be provided in due course.
Cancer in China
-- Cancer is the leading cause of death in China and is a major
public health problem with incidence increasing
-- It is estimated that there are more than 7,500 cancer deaths
per day in China; and there were 4.3 million new cancer cases and
more than 2.8 million cancer deaths in China in 2015
Lung cancer in China
-- Lung cancer remains the #1 killer in China of both men and women
-- Over 700,000 new cases of lung cancer diagnosed annually
o 2015: new cases 733,000 - Mortality 610,000
-- Approximately 350 million adults were current smokers in 2015
(Different sources: Chinese Journal of Cancer 2016 and Cancer
Statistics in China, 2015)
For further information:
Oncimmune Holdings plc
Geoffrey Hamilton-Fairley, Chief Executive Officer
contact@oncimmune.co.uk
Zeus Capital Limited (Nominated Adviser and Joint Broker)
Giles Balleny, Hugh Kingsmill Moore
+44 (0)203829 5000
Bryan, Garnier & Co Limited (Joint Broker)
Phil Walker, Dominic Wilson
+44 (0)20 7332 2500
Berenberg (Joint Broker)
Toby Flaux, Charlotte Sutcliffe
+44 (0)20 3207 7800
Media enquiries:
Consilium Strategic Communications
Chris Gardner, Matthew Neal, Lindsey Neville
Oncimmune@consilium-comms.com
+44 (0)20 3709 5708
About Oncimmune
Oncimmune is a leading early cancer detection company developing
and commercialising its proprietary EarlyCDT(R) platform
technology. Oncimmune has pioneered the development of autoantibody
tests that can detect cancer up to four years earlier than other
methods and can be applied to a very wide range of solid tumour
types. The Company's first product, EarlyCDT(R)-Lung, was launched
in 2012, as a CLIA test in the USA and since then over 150,000
commercial tests have been sold. EarlyCDT(R)-Lung is available
through physicians in the US and also privately in the UK and other
regions. EarlyCDT(R)-Lung is being used in the largest ever
randomised trial for the early detection of lung cancer using
biomarkers, the National Health Service (NHS) Scotland ECLS study
of 12,210 high-risk smokers. EarlyCDT(R) tests for liver and
ovarian cancer are in development.
Oncimmune, headquartered in Nottingham, United Kingdom with
testing facilities in the US, joined AIM in May 2016 under the
ticker ONC.L. For more information, visit www.oncimmune.com
About Genostics Co. Ltd
Genostics Co. Ltd is one of the subsidiaries of Gene Group
Holding Ltd. (GGH). GGH was founded in 1992 and currently has 18
offices across China and over 650 employees. Subsidiaries includes
GeneTech(Shanghai) Co. Ltd., Gene Co. Limited, eBiotrade and Ecotek
Co. Ltd.. GGH has approximately 20 years of experience in R&D,
manufacturing, marketing and distribution of immunological and
molecular diagnostic products in the fields of oncology, pathology,
hematology and cytogenetics, GeneTech(Shanghai) Co. Ltd. has a CFDA
certified cGMP manufacturing facility and has ISO9001 and ISO 13485
accreditation. GeneTech(Shanghai) Co. Ltd. is focused on developing
a range of molecular and companion diagnostic products to use in
the precision diagnosis and medicine.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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