LONDON: Oncimmune Holdings plc, a leading global immunodiagnostics group, has entered into an exclusive partnership agreement, which the Board believes will unlock the full potential of EarlyCDT Lung in the United States.

This agreement with Biodesix, Inc., a leading lung cancer diagnostic solutions company, encompasses both the commercialisation by Biodesix of EarlyCDT Lung, as well as the supply by Oncimmune of the EarlyCDT Lung product.

The agreement also involves the sale of Oncimmune’s US subsidiary’s operations including the CLIA laboratory.

Under the terms of the agreement, from today until 1 November 2019, Oncimmune will continue its current US activities in exchange for a monthly payment from Biodesix thereby lowering the Group’s monthly cash burn.

On the Effective Date, Biodesix will acquire the assets of Oncimmune’s US operations for a fixed cash lump sum consideration and take on the full operating costs of these assets, further materially lowering Oncimmune’s ongoing monthly cash burn.

Oncimmune has also granted Biodesix the opportunity to commercially exploit the EarlyCDT Lung potential as a screening indication in the US in consideration for a further significant cash lump sum payment by the end of 2020.

Oncimmune will also collaborate with Biodesix on research and development activities in order to fully leverage EarlyCDT Lung both in the US and other major lung cancer markets.

Over the next five years this agreement represents value to Oncimmune of up to $28 million of which approximately $7.2 million is the minimum volume-based revenues. The balance of approximately $20.8 million is represented by both cash lump sum payments, including $1 million for the sale of Oncimmune’s US subsidiary’s operations, and direct operating cost savings of approximately $2.2 million per annum, will lead to a material reduction in Oncimmune’s monthly cash burn from 1 November 2019.