A Diagnostics & Imaging Week
Genesis Bioventures (BGI; New York) said it has agreed to acquire the assets of Prion Developmental Laboratories (PDL; Buffalo Grove, Illinois). Financial details were not disclosed.
GBI currently holds about 44% equity interest in PDL and said it intends to establish the diagnostic business as a wholly owned subsidiary. The transaction is expected to close within 60 to 90 days, assuming successful completion of due diligence.
The founding scientists at PDL, Dr. Richard Rubenstein and Dr. Robert Petersen, will continue with the new company as officers and directors.
GBI said it has worked closely in the development of PDL's Rapid Prion-Detection Assay tests. In February, PDL granted GBI an exclusive worldwide sales, marketing and distribution agreement to commercialize the tests and reported last month that it granted an exclusive sublicense for commercialization in the Pacific Rim. GBI said it believes that the purchase further ensures PDL's technology reaches customers faster than under its current ownership.
Douglas Lane, president/CEO of BGI, said, "We are committed to establishing a successful diagnostic company based on the patented products developed by Dr. Rubenstein and Dr. Petersen to detect prion diseases such as Mad Cow. The BSE rapid assay has two compelling attributes: the speed and accuracy of the test makes it economically feasible for producers to test all cattle where currently less than 1% of cattle in the U.S. are tested."
GBI said that the BSE rapid assay has completed development and is ready for global commercialization.
The assay is designed to test for mad cow disease, directly at the point of kill rather than in a laboratory. Composed of a rapid test strip, the test would generate results at the producer site in less than an hour, allowing producers to know if the animal is infected with BSE before processing.
The company said the test's "inexpensive" costs paves the way for testing of all cattle for mad cow, destined for human consumption, and would allow would 15%-35% premium pricing for added cost of about a penny a pound.
GBI is focused on developing diagnostics and therapeutics in oncology and neurodegenerative diseases.
In other dealmaking activity:
• The Sagemark Companies (New York), owner/ operator of positron emission tomography (PET) medical diagnostic imaging centers, reported completing the sale to Trident Advisors of its 24.1% limited partnership interest in Trident Growth Fund for $2.57 million, $625,000 paid in cash at the closing of the transaction and the balance paid by Trident Advisors' four-year secured promissory note of $1,945,000.
"We believe that this transaction enhances shareholder value, providing capital to develop additional PET imaging centers to grow our medical imaging portfolio and strengthen our position in the medical diagnostic imaging industry," said Ted Shapiro, Sagemark's president/CEO.
Sagemark owns, operates and administers outpatient medical diagnostic imaging centers that utilize PET, and PET and computed tomography (PET/CT) imaging systems.
• Epix Pharmaceuticals (Cambridge, Massachusetts), a developer of pharmaceuticals for MRI that in April reported an agreement to merge with Predix Pharmaceuticals Holdings (Lexington, Massachusetts), has set its an- nual meeting for Aug. 15, for Epix shareholders to consider the merger.
Epix uses its Target Visualization Technology to create imaging agents targeted at the molecular level and to enable physicians to use MRI to obtain information about specific disease processes.
On April 3, Epix reported the agreement to merge with Predix to create a company with capabilities in therapeutics and imaging.