(Yicai Global) June 10 -- Shares in Thalys Medical Technology advanced by as much as 3.5 percent today after the Chinese in-vitro diagnostic product provider said it will invest in US biomedical startup Inflammatix and will obtain regional exclusive rights to some of its rapid diagnostic technology.
Thalys’ stock price [SHA:603716] closed up 3.09 percent at CNY14.33 (USD2.24). Earlier in the day it had gained 3.5 percent to reach CNY14.40.
Thalys will invest USD5 million in California-based Inflammatix, as part of its D-series fundraising, to obtain a 1.63 percent stake, the Wuhan, central Hubei province-based company said yesterday.
In addition, Thalys will obtain exclusive development, production, marketing, sales and service rights to Inflammatix’s rapid molecular detection platform Myrna and sepsis diagnostic detection chip InSep on the Chinese mainland as well as Hong Kong, Macao and Taiwan, it said.
The Chinese in-vitro diagnostics firm will pay royalties to Inflammatix, including milestone fees, an annually-fixed license fee and commission of between 10 and 20 percent of product sales, the firm added.
Inflammatix, which started off in a Stanford University research lab, integrates mRNA genetic technologies with artificial intelligence and machine learning to create a host-response-based diagnostic system that can rapidly identify diseases.
The patented technology, which has yet to go to market, has been granted the Breakthrough Devices Designation from the US Food and Drug Administration.
Editor: Kim Taylor