ProPhase Labs, a diagnostics, genomic and biotech-centered company, has entered an asset purchase agreement to acquire exclusive rights to a esophageal pre-cancer screening tool made by Stella Diagnostics, another diagnostics company.
The $4.5 million deal for Stella's tool was made up of $3.5 million in cash and $1 million in ProPhase stock, with the opportunity to earn an additional $2 million based on a revenue commercial milestone after five years post deal, according to a Dec. 19 news release from ProPhase.
Stella will also receive a 5 percent royalty based on adjusted commercialized gross margin of its intellectual property. The deal is subject to stockholder approval, and a close is expected in January 2023, according to the release.
The pre-cancer screening tool is designed to find cancer early and has been tested on 200 individuals. It has shown a 99 percent sensitivity and specificity rate of detecting protein expression cells that are at high risk for cancer.