- Agreements with three global companies for test development and validation
Cambridge, UK 25 November 2015: Horizon Discovery Group plc (LSE:HZD) (Horizon), the international life science company supplying research tools and services that power genomics research and the development of personalised medicines, today announced it has signed development agreements with three major developers of companion diagnostic tests worth an initial c$3.3 million (c£2.2 million).
The agreements will see the Company developing new and/or supplying existing reference standards for the development and validation of new companion diagnostic tests, and for the potential inclusion in on-market diagnostic kits under Original Equipment Manufacture (OEM) agreements. Horizon’s reference standards are used to benchmark the accuracy and effectiveness of diagnostic tests with c$3.2 million (c£2.1 million) of revenue to be recognised in 2015 and the remainder in 2016.
Dr Darrin M Disley, Chief Executive Officer, Horizon Discovery Group, said: “For these prominent diagnostic companies to choose to collaborate with Horizon underlines our expertise and leadership in the creation of reliable diagnostic reference materials, increasingly critical for precise cancer diagnosis. This represents a continuation of our progress in creating a greater network of trusted partnerships and in finding new channels to market for our products.
“These deals are part of larger collaborations with the companies involved and they are expected to lead to additional revenue over time.”
The three partnerships are in line with Horizon’s strategy of driving sustainable, scalable core revenue growth. Reagent development and supply of materials for diagnostic test validation programmes provide near-term revenue while opening up avenues for future OEM relationships. Such relationships deliver visible and predictable revenues as Horizon’s reference standards are integrated into the diagnostic work-flows and kits of partners.
Under these agreements, which include an extension of a pre-existing program, Horizon will provide reference standards for genomic and immunohistochemistry1 based standards.
1. Immunohistochemistry is process of detecting antigens (e.g. proteins) in cells of a tissue section by exploiting the principle of antibodies binding specifically to antigens in biological tissues
Companion diagnostic tests are intended to assist physicians in making treatment decisions for their patients. They help physicians assess the likely efficacy and safety of a specific drug or drug class for a targeted patient group or sub-groups, based on genetic information, and are increasingly required by regulators as a condition of approving new drugs for sale.