
Epigenomics AG Finalizes Asset Acquisition Agreement with New Day Diagnostics; Companies to Develop Next Generation Colon Cancer Blood Test
Berlin-based biotechnology company Epigenomics AG best known for its Epi proColon® blood test for colorectal cancer screening has successfully concluded its asset acquisition agreement with New Day Diagnostics LLC, a U.S.-based diagnostics and contract research company. The agreement, which was initially announced on July 24, 2023, has resulted in the transfer of almost all of Epigenomics’ major assets to New Day Diagnostics. The closing of this transaction has seen Epigenomics receive an initial cash payment of USD 0.5 million and an interest in New Day Diagnostics. Additionally, the company is set to receive further payments of USD 1.0 million starting from December 1, 2023, with an additional USD 0.3 million payable as of June 30, 2024.
The agreement with New Day Diagnostics also holds the potential for additional cash payments based on specific milestones related to Epigenomics’ product, Epi proColon, and especially the “Next-Gen” version. These payments could amount to a maximum of USD 8.0 million. Furthermore, Epigenomics stands to receive license payments and earn-out payments, mainly in the form of royalties on sales, extending until 2043, which coincides with the end of the patent’s lifetime. The final payments are contingent on the commercialization of Epi proColon “Next-Gen.”
New Day Diagnostics is also developing a blood based test for colorectal cancer, and consequently it appears likely the companies will combine intellectual property and resources to generate a new product. Despite receiving U.S. FDA approval, Epi proColon received little traction in the U.S. market against market leader Exact Sciences given lower overall accuracy rates.