Proteomics International Laboratories Ltd (ASX:PIQ) has signed an exclusive licence deal worth US$1.5 million for its PromarkerD assay used for the diagnosis of diabetic kidney disease in the Dominican Republic.
PromarkerD is a specialised test that uses the unique make-up of proteins in a person’s blood to provide an early detection of the onset of diabetic kidney disease.
The licence granted to Puerto Rico based Omics Global Solution will allow it to manufacture the kits in Puerto Rico and distribute in the Dominican Republic.
Although the Dominican Republic has only 10.6 million people, the net present value of financial terms is in excess of US$1.5 million for the first nine years of the agreement.
The licence will include an upfront payment, milestone payments for commercialisation targets related to kit manufacture, and ongoing royalties based on sales revenue.
There are minimum royalty requirements each year for Omics to maintain its exclusivity in the country.
According to the International Diabetes Foundation, 860,000 people or 8.1% of adults in the Dominican Republic have diabetes.
The US Centre for Disease Control estimates that 35% of adults with diabetes have chronic kidney disease and 20% will end up with kidney failure.
Importantly, the PromarkerD in vitro diagnostic kit (IVD) will come under the umbrella of the U.S. FDA guidelines since it will be manufactured in the U.S. territory of Puerto Rico.
Hence, it has the potential to act as a stepping stone for commercialisation in the massive U.S. market.
For the 12 months ended 30 June 2016, Proteomics’ income from analytical services increased 33% year on year to $0.81 million.
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