Oncocyte Shares Explode on Licensing Deal with China’s Burning Rock Biotech

Shares of Oncocyte were soaring higher this week as Wall Street learned that the company has signed a licensing deal with China’s Burning Rock Biotech.

The cancer detection company said it has licensed a lung cancer test to Burning Rock Biotech BNR for use in that country.

The test, dubbed DetermaRx, is meant to identify high-risk, early-stage lung cancer patients.

“Burning Rock is one of the fastest growing and largest companies in China’s next-generation sequencing based cancer therapy selection market,” Oncocyte said in a statement.

“Under the agreement, Oncocyte will receive upfront cash payments after transferring and installing DetermaRx technologies, and for a fixed number of tests performed when DetermaRx achieves inclusion in the U.S. National Comprehensive Cancer Network Guidelines,” the company stated.

“Oncocyte will also receive ongoing royalties per patient tested with DetermaRx,” the company added. “The transfer of the testing technology is scheduled to occur in the first quarter of 2021, and the technology installation is expected to be completed by the third quarter of 2021.”

No financial terms were disclosed.

“China represents the largest patient population in the world for DetermaRx,” Oncocyte noted. “This agreement marks Oncocyte’s fifth global licensing agreement and completes the company’s stated goal of reaching all the major world markets within the first year of launch.”

Oncocyte is a molecular diagnostics company whose mission is to provide actionable answers at critical decision points across the lung cancer care continuum.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.