Under the agreement, Prometheus will receive an upfront payment of an undisclosed amount and could receive up to $420 million in milestone payments.
The firm is conducting clinical trials in preparation for applying for FDA clearance to market its POC instrument and first assay in the first quarter of next year.
The firm said that the new funds will enable it to build on the continued commercial expansion of its first product, PredictSure IBD, in the coming months.
Nestlé Health said that employees of Prometheus are becoming employees of Precision IBD, with the exception of those working in its point-of-care diagnostic business.
The test uses turbidimetry to measure levels of fecal calprotectin, a neutrophilic protein biomarker of intestinal mucosal inflammation.
An increased blood-to-stool ratio in the concentration of bacterial short-chain fatty acids marked higher permeability in the intestinal wall.
Life Genomics will distribute Luxia's 1test1 test in Sweden, Denmark, Finland, Iceland, and Norway. The test leverages sequencing technology to analyze the 16s RNA gene.
The diagnostic test, IBS-smart, which measures antibodies that are elevated in patients with post-infectious irritable bowel syndrome, is already available to physicians in the US.
The test is a 15-biomarker quantitative PCR panel used to stratify patients with Crohn's disease and ulcerative colitis based on the severity of their illness.
The device is designed to be used with the Inova Diagnostics' Quanta Flash assay for the detection of fecal calprotectin in human stool samples.