Rosetta Genomics Ltd. (Nasdaq:ROSG) has signed a license and collaboration agreement with Prometheus Laboratories Inc. for the exclusive US rights to three of Rosetta's new microRNA-based cancer diagnostic tests: miRview mets, miRview squamous and miRview meso.
Prometheus is a private specialty pharmaceutical and diagnostic company that has hundreds of millions of dollars in annual sales. It recently published a prospectus for an IPO on Nasdaq, despite the market climate.
Prometheus will pay Rosetta milestone payments and provide R&D funding, and will also make royalty payments on net sales in the US.
Prometheus will also invest $8 million in Rosetta for about 14% of the company. It will pay $4 per share, a 41% premium on the share price.
Rosetta closed at $3.46 yesterday, giving a market cap of $42 million.
Prometheus and Rosetta also agreed to jointly develop two new microRNA-based gastroenterology tests, which may result in additional, success-based milestones and royalty payments to Rosetta. Funding for development of these gastroenterology tests will be provided by Prometheus.
Rosetta president and CEO Amir Avniel said, "When choosing a partner, a number of variables must be considered, such as the quality of the partner, the relationship, amount of investment, and the terms of the deal. Prometheus is in a league of its own in terms of expertise in obtaining regulatory permits, insurance coverage, and the marketing of tests like ours. It markets premium tests that cost hundreds of dollars, albeit, not yet at a price of the thousands of dollars that we intend to ask for our tests."
Avniel added, "We believe that with this agreement Rosetta has proven the great commercial value of its first three products, and has established itself as a leader in the development of novel, molecular diagnostic products based on microRNAs. We are delighted to enter into this comprehensive partnership with Prometheus. With Prometheus these tests now will be available across the US, and will be supported by an organization with a proven ability in diagnostic testing services and in launching new products."
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2009
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