Business
Spectral closes sale of rapid cardiac immunoassay test business
Spectral closes sale of rapid cardiac immunoassay test business.
About this update from Spectral Medical Inc
[{"type":"text","content":"\n\n\n\n\nTORONTO, Feb. 7 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI) is pleased\nto announce today the closing of the sale of its rapid cardiac immunoassay\ntest business to Nanogen, Inc. (NASDAQ: NGEN).\nDr. Paul Walker MD PhD, CEO of Spectral stated, \"Today represents a new\nchapter for Spectral. Spectral will now have the opportunity to focus on its\nkey growth areas in sepsis and infectious disease. We will have sustainability\nthrough our royalty and reagent revenues, and growth both from our existing\nproducts and from other potential opportunities facilitated by our\nstrengthened balance sheet.\"\nAs a result of the transaction, Spectral received total consideration of\nCDN$9 million. Nanogen acquired Spectral's assets related to the rapid cardiac\nbusiness, including certain intellectual property and capital equipment, and\nassumed on-going operating responsibilities for sales, marketing,\nmanufacturing and facilities related to the rapid cardiac business. Spectral\nretains intellectual property and revenues related to its market leading\nsingle chain Troponin I calibrator, as well as other high value reagents. This\nretained reagent business accounts for approximately CDN$3 million dollars in\nannual revenues. Approximately 50 employees will join Nanogen, including David\nRay, former Chief Operating Officer of Spectral.\n\"Spectral has retained the key personnel, capabilities and equipment to\nmanufacture its remaining products, support the development of new products,\nmanage ongoing clinical development, and continue new business development.\nToday, we are a leaner company, adequately funded for our planned operations,\nand focused on rapidly delivering shareholder value. We are very excited for\nour future,\" Dr. Walker added.\nSpectral's major retained product lines include the Endotoxin Activity\nAssay. This product holds a market leading position as the world's first FDA\napproved diagnostic test for sepsis. Sepsis kills approximately 750,000 people\nin the U.S. each year and accounts for over 17 Billion Dollars in annual\nhealthcare costs. Spectral currently has clinical placements of this assay in\nJapan, the United States, Canada, and Europe. Spectral also has developed\nimportant partnerships for commercializing this assay, including with major\ntherapeutics companies.\nSpectral also retains its West Nile ...