Cellmid (ASX: CDY) has been issued 1,084,622 shares worth NZ$0.60 each from New Zealand's Pacific Edge (NZE: PEB) as a milestone fee after the latter's Cxbladder® bladder cancer test received clearance to be sold and marketed in the U.S.
The current market value of the Pacific Edge stake is around NZD$650,000 (A$580,000).
The two companies had signed a licence agreement in 2010 for the use of midkine as one of the biomarkers in Pacific Edge's Cxbladder®.
These provides for a milestone fee, payable in Pacific Edge shares, at the time that Cxbladder® sales commence in the U.S. as well as royalties on revenues.
Pacific Edge has achieved solid progress since the license was signed and has recently received CLIA1 registration of its Pennsylvania labs clearing the way for the launch of Cxbladder® in the United States.
The CLIA registration enables Pacific Edge to commence their sales and marketing program to urologists.
Midkine has been extensively validated as a biomarker in a range of cancers. It has been shown to appear very early in some solid tumours with demonstrated utility in disease management and monitoring.
Cellmid owns patents for the use of midkine as a biomarker for the early diagnosis, prognosis and disease management of any cancer.
In addition to its in-house diagnostic programmes, Cellmid's commercialisation strategy includes out-licensing this patent family to diagnostic companies on a cancer indication basis.
The first license was signed in October 2009 with Celera-Quest for midkine to be used in their lung cancer test.
Since then Cellmid signed several licenses and commercial collaboration agreements with diagnostic companies including Pacific Edge, Fujikura Kasei and most recently Abcodia, creating a strong and growing portfolio of diagnostic assets.
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