NeoGenomics has entered into a strategic supply agreement with Abbott. The deal provides for Abbott to supply materials for NeoGenomics to develop its own FISH (fluorescence in situ hybridization)-based test for the diagnosis of melanoma.
In a separate transaction, Abbott has also acquired 9.6% of NeoGenomics common stock for $4.8 million.
Under the terms of the agreement, NeoGenomics will evaluate and select from Abbott’s proprietary single FISH probes, to develop and commercialize a test for melanoma diagnosis in the US.
Reportedly, once the probes have been identified by NeoGenomics, Abbott will supply them over the course of a ten-year term. The agreement may be expanded, under certain circumstances, to include up to two additional tests for other cancers.
In addition to the deal, NeoGenomics and Abbott executed a common stock purchase agreement and a registration rights agreement, pursuant to which Abbott has invested $4.8 million to acquire 3,500,000 common shares of NeoGenomics at a price of $1.362 per common share. These agreements prohibit Abbott from selling or otherwise transferring its shares at any time during the 180-day period immediately following the closing of the transaction.
Douglas VanOort, chairman and CEO for NeoGenomics, said: “We are delighted to have entered into this strategic agreement with Abbott. Melanoma is the most serious form of skin cancer, and its incidence continues to rise significantly. We are very pleased to have this opportunity to research, develop and offer a new genetic test to help clients better diagnose and treat patients who may suffer from melanoma.