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CareDx Licenses Illumina NGS Transplant Clinical Application Products

NEW YORK (GenomeWeb) – CareDx reported in a filing with the Securities and Exchange Commission late Tuesday that it has signed a licensing and commercialization agreement with Illumina for the worldwide distribution, development, and commercialization rights to Illumina's next-generation sequencing transplant clinical application products.

Beginning on June 1, CareDx will be the exclusive worldwide distributor of Illumina's TruSight HLA v1 and v2 product lines, and associated Assign HLA software. The firm said it plans to use the Illumina products for bone marrow transplantation diagnostic testing and solid organ transplantation diagnostic testing. It has been granted exclusive rights to develop and commercialize the next generation, v3, of the HLA product lines for use in bone marrow and solid organ transplant testing, and as an NGS product for chimerism detection.

Under the terms of the deal, CareDx will use its own trademarks for commercialization of the development stage HLA and chimerism products and intends to use names under the overall brand of AlloSeq — the individual products will be named AlloSeq HLA, AlloSeq BMT, and AlloSeq cfDNA. Further, CareDx has made a $5 million initial payment to Illumina and will pay royalties in the mid-single to low-double digits on sales of future commercialized products. The firm has also agreed to minimum purchase commitments of finished products and raw materials from Illumina through 2023. Illumina, in turn, has agreed to provide transition and support services to CareDx.

"CareDx is uniquely positioned to provide genomic information to transplant patients to enable personalized medicine in this high-need, high-cost population. We continue to deliver on our promise to bring next-generation sequencing solutions to the transplant clinic," CareDx CEO Peter Maag said in a statement.