XPhyto Therapeutics Corp. (CSE:XPHY ) (OTCQB:XPHYF) (FRA:4XT) said it has signed a definitive agreement for the acquisition of its exclusive diagnostics development partner 3a-diagnostics GmbH, in Frickenhausen, Germany.
The Vancouver-based next-generation bioscience accelerator will acquire all the outstanding shares of 3a for 400,000 euros (US$471,260) to be paid immediately, plus 3.5 million euros (US$4,1million) to be paid on closing, which is likely to happen on or around October 31, 2021.
In a statement, XPhyto CEO Hugh Rogers said: "We have collaborated closely with the 3a-diagnostics team on several diagnostics products and have found them to be a highly innovative and focused partner.”
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“The successful development and recent launch of the 25-minute PCR test COVID-ID Lab is a great example of our fruitful collaboration. We strongly believe that this acquisition will result in powerful synergies and further feed XPhyto's diagnostic pipeline, supporting our long-term commercial growth plans," he added.
In April 2020, XPhyto and 3a signed a definitive development, technology purchase and license agreement for the development and commercialization of real-time, low-cost and easy-to-use biosensor screening tests and related development platform for the rapid detection of infectious diseases. This agreement was amended in July 2020 to include 3a's proprietary enhanced RNA screening system, related intellectual property (IP) and exclusive commercialization rights for its rapid COVID-19 tests. In March 2021, XPhyto and 3a received European commercial approval for their 25-minute PCR test.
XPhyto noted that the planned acquisition of 3a is expected to result in "significant synergies in R&D and manufacturing," better margins for commercial products, such as the 25-minute COVID-ID Lab test; as well as expedite commercialization of products in 3a's near-market development pipeline.
“3a's intellectual property, including patents, know-how, expertise and contracts with third parties will be transferred to XPhyto at the time of closing the acquisition," said the company. XPhyto plans to maintain, support and further develop 3a's operations in southern Germany.
"This agreement underscores the value of our experienced team and proven track record. We look forward to the completion of the transaction and joining XPhyto and believe that together we will develop and commercialize many great products in both the diagnostic and biosensor markets," said Dr Heinrich Jehle, who is the managing director of 3a-diagnostics GmbH.
Meanwhile, Wolfgang Probst, Director Germany at XPhyto, said that with the company's activities currently focused on Europe and the Middle East, 3a-diagnostics, with its facilities near Stuttgart, is “a valuable addition to our Germany-based operations.”
“3a-diagnostics has an attractive pipeline, experienced team and is well respected for their work in the development and commercialization of innovative diagnostic products,” added Probst. “They perfectly complement our existing capabilities and contribute to XPhyto's successful corporate development."
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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