XPhyto Therapeutics Corp. (CSE:XPHY, OTCQB:XPHYF) revealed that its acquisition of biotechnology company 3a-diagnostics GmbH (3a), first announced on July 20, 2021, is now complete.
"The strategic acquisition of 3a is a transformative step in XPhyto's commercial strategy," XPhyto Director Peter Damouni said in a statement. "The integration of a highly innovative European biosensor development company places XPhyto at the forefront of the rapid point-of-care test industry, an explosive and technology driven sector.”
This is the Vancouver and Germany-based bioscience accelerator’s second major acquisition since going public in August 2019, having completed the takeover of Vektor Pharma TF GmbH in September 2019.
READ: XPhyto in transformative acquisition with 3a-diagnostics to enter hi-tech biosensor market and expand diagnostic product portfolio
“The corporate strategy of acquiring high-tech biotechnology and pharma companies showcases the potential growth acceleration and synergies for XPhyto's biosensors, diagnostics and drug delivery portfolios," noted Damouni.
3a is located southeast of Stuttgart, Germany, and specializes in the development, production and marketing of point-of-care (PoC) test systems. It has patented a pipeline of oral biosensor screening tests for bacterial and viral infectious diseases, including stomatitis, periimplantitis, periodontitis, group A strep, and influenza A.
It has also received grant funding from Germany's Federal Ministry of Education and Research for the development of low-cost and easy-to-use oral screening tests for the rapid detection of influenza A variants that are high-risk pandemic threats such as H1N1 and H5N1.
3a's coronavirus (COVID-19) portfolio includes "Covid-ID Lab," a rapid point-of-care PCR test platform with a CE mark approved for sale in Europe. Total processing time is 25 minutes with minimal equipment and training. On July 28, 2021, XPhyto and 3a announced the identification of the first saliva-activated "in-mouth" biosensor candidates for the detection of a COVID-19 infection. The research is the foundation for the development of the first enzyme-activated biosensors for low-cost and easy-to-use oral screening applications for the rapid detection of COVID-19.
The company recently received an EU commercial registration number to sell its biosensor for mouth-related infections and oral inflammation, as announced on August 30, 2021. This product is aimed at the global oral health and cosmetic dentistry market which is estimated at $435 billion in 2021, according to MedicalExpo. The market is expected to touch $698.8 billion by 2030 and is growing at a compound annual growth rate of 6.4%, according to Precedence Research.
"With the integration of 3a's biosensor technology into our next-generation ODF platform, we are excited to be positioned to transform and dominate the market for rapid screening tests for a wide range of infectious diseases, including COVID-19, with highly affordable rapid oral tests starting in the coming year," said Professor Dr Thomas Beckert, managing director of Vektor Pharma TF GmbH, a wholly-owned subsidiary of XPhyto.
Dr. Beckert, who will spearhead 3a’s executive management team, added that 3a has several biosensors in the development pipeline. It plans to enter the market with low-cost rapid tests for infectious diseases as early as 2022.
“We are very confident and excited to have the opportunity to revolutionize the diagnostics and rapid test market with products based on our integrated proprietary technologies, that are unique and leading in the world," said Dr. Beckert.
XPhyto pointed out that the 3a acquisition will offer “significant synergies” in R&D and manufacturing, along with much better margins for commercial products such as the Covid-ID Lab. In addition, it will speed up the commercialization of products in 3a's near-market development pipeline. The firm added that 3a's intellectual property, patents, expertise, and contracts are included in the acquisition.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive