Novartis and Gen-Probe expand blood screening collaboration

The collaboration between Novartis and Gen-Probe was established in 1998. It was previously scheduled to expire in 2013. Under the original terms of the agreement, the companies shared revenue from the sale of blood screening assays. Gen-Probe was responsible for manufacturing costs, while Novartis was responsible for commercial expenses. The companies shared R&D costs.

Under the revised agreement, Gen-Probe will continue to be primarily responsible for R&D and manufacturing. Novartis will remain responsible for sales and marketing of the products, but will collaborate more closely with Gen-Probe on sales, marketing and distribution strategies.

In addition to sharing R&D costs, the companies will share manufacturing expenses. Gen-Probe also will receive a percentage of end-user revenue that escalates gradually from 2009 until 2015, and remains constant thereafter.

As part of the expanded agreement, Novartis has agreed to help fund development of Gen-Probe’s Panther instrument, a fully automated molecular testing platform, for the blood screening market. The companies also have agreed to evaluate, using Gen-Probe’s technologies, the development of companion diagnostics for current or future Novartis medicines.

Peter Maag, global head of diagnostics at Novartis Vaccines and Diagnostics, said: This renewed agreement with Gen-Probe provides a solid foundation that enables us to continue our expansion into the transfusion medicine market where we will provide innovative solutions to blood centers worldwide.