A Vancouver biotech that developed a gene-specific test for cancer is fine-tuning its commercialization plans while in the middle of a legal fight with an American diagnostics company.
Med BioGene Inc. (TSX-V:MBI) announced Wednesday it is amending a commercialization agreement it has with Precision Therapeutics Inc. to market its LungExpress Dx therapy.
LungExpress Dx is a proprietary gene-based test used in patients following the removal of tumours. It has been validated by four independent studies in predicting patient mortality, according to a company press release.
In April 2011, Med BioGene closed a commercialization and licensing agreement that gave Precision Therapeutics, Inc. exclusive global rights to develop and commercialize LungExpress Dx.
Under the agreement, Med BioGene received $2.3 million, half of which is credited against future royalties and the company is eligible for up to $1 million in milestone payments.
Med BioGene announced Wednesday that the agreement is being amended. Once LungExpress Dx has had its commercial launch, milestone payments will be $500,000, with additional payments of $500,000 to be paid upon achieving net revenues of $5 million.
Meanwhile, Med BioGene has filed a motion in New York State Supreme Court asking for a summary judgment to dismiss the legal claims brought against it by Signal Genetics LLC and Respira Health LLC.
In February 2011, Signal filed suit in the U.S. against Med BioGene, alleging a breach of agreement, violating confidentiality and misuse of proprietary information. Precision was later added as a co-defendant.
Signal claims Med BioGene breached an agreement to provide Signal with an exclusive, worldwide licence to use LungExpress Dx for at least 10 years.
“MBI continues to believe that the lawsuit is frivolous, vexatious and entirely without merit and is defending the lawsuit vigorously,” Med BioGene states in a press release.
“MBI has received financial support from Precision to, among other things, conduct such defence (half of which is credited against future royalties that may be owed to MBI by Precision) and to cover any settlement or award of damages made against MBI, subject in all cases to certain threshold limits.”
