NEW YORK ─ XPhyto Therapeutics on Tuesday announced it has inked an agreement to acquire 3a-diagnostics for €3.9 million ($4.6 million), including €400,000 up front and €3.5 million on closing of the deal.
Under the agreement, Vancouver, British Columbia-based XPhyto will acquire all of the outstanding shares of 3a, its exclusive diagnostics development partner.
XPhyto expects that acquisition will provide it with an experienced research and development team and a pipeline of ready-to-launch biosensor products, and enable its expansion into the point-of-care biosensor diagnostic markets. The acquisition is also expected to provide synergies in R&D and manufacturing and improved margins for products, and expedite commercialization of products in 3a's near-market development pipeline, XPhyto said.
Frickenhausen, Germany-based 3a specializes in the development, production, and marketing of point-of-care test systems. It has developed a pipeline of peptide-based biosensor screening tests for bacterial and viral infectious diseases, which include stomatitis, peri-implantitis, periodontitis, scarlet fever, and influenza.
3a's intellectual property — including patents, know-how, expertise, and contracts with third parties — will be transferred to XPhyto at the closing of the acquisition.
XPhyto said it plans to maintain, support, and further develop 3a's operations in Southern Germany.
"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," Wolfgang Probst, XPhyto director in Germany, said in a statement.
The companies have collaborated on diagnostics products, including the development and recent launch of a 25-minute PCR test called COVID-ID Lab. In March this year, XPhyto and 3a received CE marking for the test.
XPhyto noted that in April 2020, it had inked an agreement with 3a for the development and commercialization of biosensor screening tests and a related development platform for the rapid detection of infectious diseases. The firms amended the agreement in July last year to include 3a's RNA screening system and related intellectual property, and exclusive commercialization rights for its rapid COVID-19 tests.
The acquisition is expected to close around Oct. 31, the firms said.