NeoGenomics and Power3 Medical form CRO JV

Florida-based NeoGenomics has concluded an agreement with fellow US firm Power3 Medical Products to form a joint venture contract research organization. Power3 is an early-stage company engaged in the discovery, development, and commercialization of protein biomarkers.

Under the terms of the agreement, the two will jointly own a CRO and begin commercializing Power3's intellectual property portfolio by developing blood serum-based diagnostic tests and other services around one or more of the 523 protein biomarkers that Power3 has identified to date. The latter has agreed to license to the CRO all of its IP on a non-exclusive basis for selected commercial applications as well as provide certain management personnel. NeoGenomics will provide access to cancer samples, management, sales and marketing personnel, laboratory facilities and working capital. NeoGenomics will own a minimum of 60% of the new CRO venture, which is anticipated to be launched in the fourth quarter.

As part of the agreement, NeoGenomics will provide $200,000 of working capital to Power3 within 15 days by purchasing a convertible debenture. NeoGenomics was also granted two options to increase its stake in Power3 to up to 60% of the fully diluted shares over the next 18-20 months.