The Group has entered a framework agreement with Genostics to develop and distribute its cancer detection tech in China.
Companies: Oncimmune Holdings Plc
Shares in Oncimmune (LON: ONC) have jumped on Tuesday morning off the back of the news it has signed a deal for its early cancer detection technology in China.
An exclusive license deal has been struck with Hong Kong-based company Genostics, an R&D and manufacturing company who will help develop and distribute ONC's "EarlyCDT" cancer detection platform technology.
Cancer is the leading cause of death in China with over 700,000 cases of lung cancer alone diagnosed annually.
As part of the terms of the agreement, Genostics will invest £10m in Onicimmune through 6.4m new shares at 156p per share, a 49% premium to December 29th's closing price. On top of this, ONC will:
"...receive a royalty of c.8% on the gross revenue subject to minimum royalty payments over the first six years post-market entry of £15.7 million on aggregate and £5 million (index linked) per year thereafter."
Shares in ONC jumped almost 23% to 123p per share in early morning trading off the back of the announcement.
Geoffrey Hamilton-Fairley, CEO of Oncimmune, commented:
"Oncimmune continues to deliver on our stated strategy at the time of the IPO; a key part of this was a commercial agreement for China.
"Today, we are delighted to have signed an agreement for the EarlyCDT® platform with Genostics for the People's Republic of China, a partner we have confidence has the reach to deliver on this very large market opportunity."
After reporting Revenues of £0.22m in 2017, consensus forecasts this to grow to £2.1m and £5.9m in FY18 and FY19, while Net Losses are forecast to shrink from £5m in FY17 to £2.4m in FY19.
