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On 24 January 2019, a medical technology company, Proteomics International Laboratories Limited (ASX:PIQ), announced that it had withdrawn its exclusive licensing deal with medical diagnostics company, PrismHealthDx due to continuing rollout postponements. Proteomics International is now in discussions with several diagnostic and laboratory technology companies that provide greater market exposure and faster scale and deployment, including tier 1 national diagnostic groups.
Post the announcement, PIQ shares were smashed by 11.54%, closing the dayâs session at A$0.345, as compared to the previous close of A$0.390. Although the shares have soared by 50% over last six months, the YTD return to investors stands at -2.50%.
As stated by Dr. Richard Lipscombe, Proteomics International Managing Director: The company found it right to discontinue the collaboration on realizing internal operational issues at PrismHealth that were preventing the PromarkerD rollout in the US. He further stated that PromarkerD has great significance as a leading predictive test for the therapeutic treatment of diabetes complications, which is causing over 40,000 annual deaths in the US, with related annual healthcare outlay over US$100 billion. Besides, the innovative product is being given great significance by insurance companies as it will substantially reduce the number of people who are unaware of their progressive kidney disease which needs immediate attention. Dr. Lipscombe also mentioned that the US being a major market, the company needs a new collaborator that had a full dedication to a rapid PromarkerD sales in the US.
The negotiations undertaken by the companyâs International's Head of Business Development, Chuck Morrison, are expected to be finalized within the next few months. Any license transaction is expected to involve up-front, milestone and royalty payments, in line with industry standards.
Although Prism was not one of the critical diagnostic companies in the US, it offered a US beach-head. However, Proteomics International maintained only a 1-year exclusivity for Prism until May 2019, which now stands void.
PromarkerD, worldâs first commercial kit test to detect chronic diabetic kidney disease, reported completion and first shipment in November 2018. The kit is accessible on dual technology platforms which can be operated by approved laboratories. There are approximately 260,000 CLIA certified laboratories in the US, the majority of which have diagnostic competences to certificate the PromarkerD test. Proteomics International is also targeting at registration of the kit test for broader adoption, apart from relying on the Laboratory Developed Test route.
The collaboration between Janssen Research & Development and Proteomics International seeks to accelerate diabetic kidney disease and heart disease drug discovery using PromarkerD. The company's Perth laboratory has obtained the first phase of samples from Janssen's completed clinical experiment of its gliflozon drug. The company intends to complete the first stage of samples evaluation over the next six months, targeting automation of the PromarkerD mass spectrometry test. The collaboration is expected to establish PromarkerD as a Complementary Diagnostic (CDx) test for diabetic kidney treatment. If successful, the PromarkerD test could be advised every time Janssen diabetes drugs are prescribed.
Following the principal publications of the PromarkerD experimental results, the company has been reaching out to KOLs (Key Opinion Leaders) in the US for a wider-scale rollout. Besides, the company has been looking for various peak bodies in the US that cater to diabetes and kidney ailments, to expand brand awareness in the market.
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