XPhyto to acquire 3a-diagnostics
XPhyto Therapeutics Corp is to acquire 3a-diagnostics, Frickenhausen, Germany (3a), the company's exclusive diagnostics development partner.
Pursuant to the definitive agreement, XPhyto will acquire all of the outstanding shares of 3a for EUR400,000, to be paid immediately, and EUR3.5 million, to be paid on closing, planned for on or around 31 October, 2021.
Hugh Rogers, CEO of XPhyto, says: “We have collaborated closely with the 3a-diagnostics team on several diagnostics products and have found them to be a highly innovative and focused partner. The successful development and recent launch of the 25-minute PCR test Covid-ID Lab is a great example of our fruitful collaboration. We strongly believe that this acquisition will result in powerful synergies and further feed XPhyto’s diagnostic pipeline, supporting our long-term commercial growth plans.”
In April 2020, XPhyto and 3a signed a definitive development, technology purchase and license agreement for the development and commercialisation of real-time, low-cost and easy-to-use biosensor screening tests and related development platform for the rapid detection of infectious diseases. This agreement was amended in July 2020 to include 3a’s proprietary enhanced RNA screening system, related intellectual property (IP) and exclusive commercialisation rights for its rapid Covid-19 tests. In March 2021, XPhyto and 3a received European commercial approval for their 25-minute PCR test.
The planned acquisition of 3a is expected to result in significant synergies in research and development and manufacturing; significantly improved margins for commercial products, such as the 25-minute COVID-ID Lab test; as well as expedite commercialisation of products in 3a’s near-market development pipeline. 3a’s intellectual property, including patents, know-how, expertise and contracts with third parties will be transferred to XPhyto at the time of closing the acquisition. XPhyto plans to maintain, support and further develop 3a’s operations in Southern-Germany.
“This agreement underscores the value of our experienced team and proven track record. We look forward to the completion of the transaction and joining XPhyto and believe that together we will develop and commercialise many great products in both the diagnostic and biosensor markets” notes Dr Heinrich Jehle, Managing Director of 3a-diagnostics GmbH.
Wolfgang Probst, Director Germany of XPhyto, adds: “With our activities currently focused on Europe and the Middle East, 3a-diagnostics, with its facilities near Stuttgart, is a valuable addition to our Germany-based operations. 3a-diagnostics has an attractive pipeline, experienced team and is well respected for their work in the development and commercialisation of innovative diagnostic products. They perfectly complement our existing capabilities and contribute to XPhyto’s successful corporate development.”