(Yicai Global) Feb. 2 -- Guangzhou Wondfo Biotech Co. has obtained a license from Atlas Genetics Ltd., an innovative UK-based in-vitro diagnostics company specialized in decentralized, near-patient and point-of-care (POC) testing, to commercialize and develop new products for the latter's POCT molecular diagnostics patent platform in China.
Wondfo Biotech recently signed a framework agreement with Atlas Genetics to reach a consensus on the core terms of the definitive agreement, which they will finalize soon, the biotech development company, headquartered in Guangzhou, in South China's Guangdong province, said today.
It will obtain exclusive licensing to the platform to engage in research and development, production, registration and marketing in the Chinese market, with a cooperation period of seven years, per the statement. Wondfo Biotech will pay the UK firm an upfront fee of GBP2 million (USD2.8 million) upon signing the formal agreement. It will also pay Atlas Genetics milestone fees of GBP1 million after each of its existing products gain market access permits and also when the parties' co-developed new products successfully debut on the market.
Wondfo Biotech will pay Atlas Genetics royalties for the China sales of co-developed future products. Atlas Genetics will then pay royalties to Wondfo Biotech when these products sell elsewhere in the world, per the statement.
Wondfo Biotech subscribed additional shares of Atlas Genetics for GBP14.4 million through its wholly-owned Hong Kong subsidiary. It held a 13.63 percent stake in the latter after the deal closed.
Molecular diagnosis refers to the techniques for using molecular biology to detect changes in the structure or expression level of genetic material in a patient and diagnose accordingly. Wondfo Biotech is a company specialized in the research and development, manufacture and sale of POCT products.