Sienna Cancer Diagnostics Limited (ASX: SDX) is a provider of health care services. The company offers pharmaceutical and biotechnology research and development, commercialisation, manufacturing operation, and other related services for clinical diagnostic laboratories. Sienna Cancer Diagnostics serves customers worldwide.
The company, today on 2 April 2019, has updated that it has entered into a binding pact to buy the intellectual property assets of California-based Sevident Inc., marking the company’s maiden transaction in its technology broadening strategy and a fresh opportunity to produce future revenue.
Sienna has inked a binding pact to buy the intellectual property assets (including granted patents) and precise laboratory equipment assets of Sevident Inc. for a consideration, which involves payment through cash and scrip. Post the execution of the agreement, Sevident is due to receive a cash payment of US$300,000; and fresh shares in the company, representing a sum of US$1 million.
Sevident will also be eligible to get further payments, whether in scrip or in cash of up to a sum of US$1.5 million upon realisation of future revenue milestones.
NETs technology segregates exosomes from blood or plasma rapidly than the traditional ways, such as the ultracentrifugation and column chromatography. This technology is flexible, scalable and highly specific. It is ideally suited for increasing and streamlining the sample preparation for liquid biopsies for both screening and diagnostic purposes.
This impending technology is slated to make the company able enough to advance in the exosome-led cancer tests. These tests are compatible with the existing pathology lab sample preparation timeframes and resources. This also provides the company with a strategically advantageous position, while partnering with firms that are owners of IP based on biomarkers associated with exosomes for cancer diagnostics.
The company's CEO, Matthew Hoskin said that the company’s technology expansion program aims to build future projects of novice diagnostic technologies that meet the few unmet clinical requirements in the pathology market. The company has plans to use the NETs technology to grow its product offering in the cancer diagnostic space.
Sevident’s Scientist and Inventor of the technology, Dr. Emily Stein said that the company has demonstrated record of taking diagnostic technology all the way through from research to commercialisation. She stated that there are a lot of steps in between and very few companies have navigated that path successfully. She expressed her excitement on this unique and ground-breaking technology. This technology will now have a pretty good chance of getting to market, making a significant positive impact on patient diagnosis and simultaneously creating shareholder value.
Sevident’s CEO, Dr. Peter French, will also be coming on board in an advisory role to aid the company’s continuing technology expansion program. Dr. French has extensive experience in the field of biotechnology, along with a broad knowledge in the area of research as well as development and commercialisation of diagnostics-based science.
On the stock-performance front, the stock has posted the YTD return of 10%. The company also has posted returns of -22.35% and 10% over the past six and three months, respectively. At the market close on 2nd April 2019, the stock of the company was trading at a price of A$0.069, up 4.545% during the day’s trade with a market capitalisation of ~A$17.65 million. The stock opened the trading day at A$ 0.068, reached an intraday high of $0.069, with a daily volume of 250,000. It had a 52-week high price of $ 0.095 and a 52 weeks low price of $ 0.048, with an average volume of 54,886.