Quotient and Ortho Clinical Diagnostics Establish Exclusive Commercial Partnership for MosaiQ(TM) in the Global Patient Testi...
January 29 2015 - 8:25PM
Collaboration to accelerate the commercialization
of MosaiQ™ within the $2.8 billion global transfusion diagnostics
market
- Quotient to commercialize MosaiQ™ in the donor testing
market in North America, the European Union and certain countries
in the Asia-Pacific region, excluding Japan
- Ortho Clinical Diagnostics ("OCD") to sell and
distribute MosaiQ™ in the global patient testing market and the
donor testing market in territories not addressed by
Quotient
- Quotient retains all rights to additional applications
for MosaiQ™
- OCD has provided $25 million of funding for MosaiQ™,
including a $10 million investment in new Quotient ordinary shares
at an issue price of $22.50 per share
- Quotient to receive $59 million of additional funding
upon successful achievement of certain agreed-upon regulatory and
commercial milestones
- Quotient will manufacture and supply MosaiQ™
consumables for supply to OCD. The transfer price payable by OCD
for consumables will "step up" based on agreed-upon revenue
milestones
- Quotient and OCD will collaborate to explore additional
diagnostics applications for MosaiQ™
Quotient Limited ("Quotient") (Nasdaq:QTNT), a commercial-stage
diagnostics company, and Ortho-Clinical Diagnostics, Inc., the
global market leader in transfusion diagnostics, today announced
that they are entering into a broad strategic collaboration to sell
and distribute Quotient's MosaiQ™ platform within the $2.8 billion
global transfusion diagnostics market.
Under the terms of an exclusive Distribution and Supply
Agreement ("D&S Agreement"), Quotient retains all rights to
commercialize MosaiQ™ in North America, the European Union and
certain Asia-Pacific territories (excluding Japan) for the donor
testing market, while OCD has acquired exclusive rights to sell and
distribute MosaiQ™ for the global patient testing market (for blood
grouping) and the donor testing market in territories not covered
by Quotient (for blood grouping and serological disease
screening). Quotient will be responsible for the manufacture
of all products (instruments, consumables and ancillary products)
associated with MosaiQ™ and has retained all other commercial
rights to MosaiQ™ with OCD receiving a right of first offer where
Quotient decides to commercialize MosaiQ™ with a third party for an
application other than blood grouping.
"This strategic collaboration represents a significant milestone
in our long and successful working relationship with OCD focused
upon the development of innovative new products for the $2.8
billion transfusion diagnostics market worldwide," said Paul Cowan,
Chairman and Chief Executive Officer of Quotient. "Given OCD's
leadership position in the global transfusion diagnostics
marketplace, we are pleased with the confidence they have placed in
Quotient to successfully develop MosaiQ™, our transformative
diagnostics platform for blood grouping and serological disease
screening. In addition to accelerating the commercialization
of MosaiQ™ in the $1.0 billion global patient testing market and
the donor testing market in the developing world and in Japan, this
agreement represents an important step forward with our goal of
enabling more fully characterized patient and donor blood –
ultimately improving patient outcomes. We believe our
partnership with OCD further validates MosaiQ™ both technically and
commercially, while providing important funding to support its
development timelines and objectives."
MosaiQ™ has been designed to offer a breadth of diagnostic tests
on a single multiplex consumable that is unmatched by any
commercially marketed transfusion diagnostic instrument platform,
including comprehensive antigen phenotyping and antibody
identification for all samples tested. Time to result using
MosaiQ™ will be equivalent to or significantly quicker than
existing blood grouping methods. With this capability,
adoption of MosaiQ™ should lead to improved patient outcomes by
allowing for more comprehensive matching of donor and patient
blood. MosaiQ™ will also represent a highly cost-effective
solution for donor and patient testing organizations worldwide.
Quotient has retained all rights and intellectual property
related to the development and manufacture of MosaiQ™ consumables,
which it will supply at its own cost to OCD. Under the
D&S Agreement, the transfer price for MosaiQ™ consumables
supplied to OCD by Quotient will increase as a percentage of net
sales, subject to the achievement of agreed-upon revenue
targets. In addition, a basis for calculating minimum transfer
prices has also been agreed.
"We believe this strategic relationship with Quotient for the
innovative MosaiQ™ technology has the potential to bring completely
new solutions to the global transfusion diagnostics market," said
Martin Madaus, Chairman and Chief Executive Officer of OCD.
"As the worldwide leader in blood typing, we are very excited
about the opportunity to add Quotient's novel approach to blood
grouping to OCD's market-leading product and service offerings.
Together we will bring valuable and very differentiated
offerings to donor collection agencies, hospitals and reference
laboratories worldwide."
In connection with the transaction, OCD has subscribed (through
an affiliate) for 444,445 new Quotient Ordinary shares at an issue
price of $22.50 per new Ordinary share, raising $10 million of
equity proceeds, and $15 million of 7% redeemable preference shares
(the "Preference Shares"). Following the transaction, OCD
will own approximately 2% of Quotient's fully diluted ordinary
share capital. Quotient will also be entitled to receive
payments totaling $59 million upon the achievement of specified
regulatory approvals and commercial milestones, which primarily
relate to the approval and launch of MosaiQ™ in the U.S. and the
European Union for blood grouping.
Quotient and OCD have also agreed to explore opportunities to
develop and commercialize MosaiQ™ in other diagnostics applications
outside of blood grouping and serological disease screening,
utilizing the combined knowledge and expertise of both parties.
UBS Investment Bank acted as financial advisor to Quotient.
Conference Call
Quotient will host a conference call on January 30, 2015 at 8:00
a.m. Eastern Time to discuss its collaboration with
OCD. Participants may access the call by dialing
1-877-407-9039 in the U.S. or 1-201-689-8470 outside the
U.S. The call will be webcast live on Quotient's website at
www.quotientbd.com.
A replay of this conference call will be available through
February 6 by dialing 1-877-870-5176 in the U.S. or 1-858-384-5517
outside the U.S. The replay access code is 13600550.
About Quotient Limited
Quotient is an established, commercial-stage diagnostics company
committed to reducing healthcare costs and improving patient care
through the development and commercialization of innovative tests,
currently focused on blood grouping and serological disease
screening. Quotient is developing its proprietary MosaiQ™
technology platform to offer a breadth of tests that is unmatched
by any commercially available transfusion diagnostic instrument
platform. The company's operations are based in Edinburgh,
Scotland; Newtown, Pennsylvania; and Eysins, Switzerland.
About Ortho-Clinical Diagnostics, Inc.
Ortho-Clinical Diagnostics, Inc. delivers high-quality in vitro
diagnostic products that give healthcare professionals around the
world the knowledge they need to make better treatment decisions
sooner. The company serves the global transfusion medicine
community with donor screening and blood typing products to help
ensure every patient receives blood that is safe, the right type
and the right unit. OCD also brings sophisticated information
management, testing technologies and automation and interpretation
tools to clinical laboratories worldwide to help them run more
efficiently and improve patient care. For more information,
visit www.orthoclinical.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding our
expectations of continued growth, the development, regulatory
approval, commercialization and impact of MosaiQTM and other new
products. Such statements are based on current assumptions
that involve risks and uncertainties that could cause actual
outcomes and results to differ materially. These risks and
uncertainties, many of which are beyond our control, include delays
or denials of regulatory approvals or clearances for products or
applications; market acceptance of our products; the impact of
competition; the impact of facility expansions and expanded
product development, clinical, sales and marketing activities on
operating expenses; delays or other unforeseen problems with
respect to manufacturing, product development or field trial
studies; adverse results in connection with any ongoing or future
legal proceeding; continued or worsening adverse conditions in the
general domestic and global economic markets; as well as the other
risks set forth in the company's filings with the Securities and
Exchange Commission. Investors are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. Quotient disclaims any obligation to
update these forward-looking statements.
The Quotient logo and MosaiQ™ are registered trademarks or
trademarks of Quotient Limited and its subsidiaries in various
jurisdictions.
CONTACT: INVESTOR CONTACT:
Paul Cowan, Chief Executive Officer -
paul.cowan@quotientbd.com; +41.22.716.9800
or
MEDIA CONTACT:
Irma Gomez-Dib, FTI Consulting -
irma.gomez-dib@fticonsulting.com; +1.415.706.9155
Quotient (NASDAQ:QTNT)
Historical Stock Chart
From Apr 2024 to May 2024
Quotient (NASDAQ:QTNT)
Historical Stock Chart
From May 2023 to May 2024