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Proteomics considers asset spin-offs to facilitate deals as itreaches milestones – MD31 May 202323:15 AESTProteomics International Laboratories [ASXIQ], a Perth-based commercial-stageAustralian diagnostics company, is considering asset spin-offs to facilitate deals as itreaches key development milestones and expands applications for its Promarkerplatform technology, said MD Richard Lipscombe.The AUD 114m (USD 74m) market cap company, which is seeking co-development,partnership, and distribution deals, welcomes approaches from interested partiesincluding advisors, investors, and potential partners with deal suggestions, Lipscombesaid.Specializing in blood-based diagnostics tests in areas where current testing is poor suchas chronic diseases and hard-to-treat cancers, Proteomics has already spun its noveldiagnostic for measuring oxidative stress, OxiDx, into a separate entity to facilitatecommercialization, Lipscombe said. Proteomics owns two-thirds of the asset with theUniversity of Western Australia owning the rest, he said, noting that oxidative stress isimplicated in more than 70 health conditions and has a broad range of applications fromprecision medicine to sports performance monitoring.Proteomics' PromarkerD diabetic kidney disease test, which is its most advanced assetand the first test available globally to predict the onset of diabetic kidney disease up tofour years in advance, also lends itself to a spin-off to accelerate commercialization,Lipscombe said. It is currently being rolled out in the US with Sonic USA, a division ofSonic Healthcare [OTCMKTS:SKHHY], and in the UK with Berkshire-based medicaldiagnostics distributor Apacor, he said.There has been strong appetite and lots of activity in the kidney disease diagnosticsspace with recent deals including AstraZeneca’s [LON:AZN] January acquisition ofWaltham, Massachusetts-based CinCor Pharma for USD 1.3bn and CSL’s [ASX:CSL]2022 acquisition of Switzerland-based specialty pharma Vifor Pharma for USD 18.8bn,Lipscombe noted.Proteomics would also consider spinning out its new test to detect endometriosis,which already has promising patient data and the potential to be a world-firstendometriosis detection test, Lipscombe added, noting that it is seeking co-development partners, ideally global pharmas with automated diagnostics platformsand access to large biobanks.Could still attract suitorsProteomics, which told this news service in 2020 that it could attract suitors as it meetskey development milestones, has become an even more compelling opportunity topotential buyers, given commercialisation of its PromarkerD test and expansion of itspipeline, Lipscombe said, noting that some 18% of the company is owned by boardmembers.Other attributes that make it attractive to potential suitors include its revenue-generating specialist analytical services division, which covers biomarker discovery,biosimilars and PK analysis, and earns some AUD 2m in revenue per annum, he added.While the division adds value to Proteomics as a whole, it could also equally be spun offto facilitate a separate deal, Lipscombe noted.Meanwhile, Proteomics, which recently acquired IP to develop a novel blood test foroesophageal cancer, is continuing to build its pipeline, by acquiring or in-licensing IP forother diseases that lack testing options, especially chronic diseases like Alzheimers orasthma, Lipscombe said. It is evaluating a pipeline of opportunities and welcomesapproaches from advisors with introductions to others globally including Australia, theUS, Europe, and Asia, he said.Proteomics has about AUD 8m in cash, which is expected to be sufficient for currentactivities over the next 18 months, Lipscombe said. Small acquisitions could be fundedwith cash, but it would consider raising equity for larger deals, he added.By Louise Weihart in Sydney
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IQ], a Perth-based commercial-stageAustralian diagnostics company, is considering asset spin-offs to facilitate deals as itreaches key development milestones and expands applications for its Promarkerplatform technology, said MD Richard Lipscombe.The AUD 114m (USD 74m) market cap company, which is seeking co-development,partnership, and distribution deals, welcomes approaches from interested partiesincluding advisors, investors, and potential partners with deal suggestions, Lipscombesaid.Specializing in blood-based diagnostics tests in areas where current testing is poor suchas chronic diseases and hard-to-treat cancers, Proteomics has already spun its noveldiagnostic for measuring oxidative stress, OxiDx, into a separate entity to facilitatecommercialization, Lipscombe said. Proteomics owns two-thirds of the asset with theUniversity of Western Australia owning the rest, he said, noting that oxidative stress isimplicated in more than 70 health conditions and has a broad range of applications fromprecision medicine to sports performance monitoring.Proteomics' PromarkerD diabetic kidney disease test, which is its most advanced assetand the first test available globally to predict the onset of diabetic kidney disease up tofour years in advance, also lends itself to a spin-off to accelerate commercialization,Lipscombe said. It is currently being rolled out in the US with Sonic USA, a division ofSonic Healthcare [OTCMKTS:SKHHY], and in the UK with Berkshire-based medicaldiagnostics distributor Apacor, he said.There has been strong appetite and lots of activity in the kidney disease diagnosticsspace with recent deals including AstraZeneca’s [LON:AZN] January acquisition ofWaltham, Massachusetts-based CinCor Pharma for USD 1.3bn and CSL’s [ASX:CSL]2022 acquisition of Switzerland-based specialty pharma Vifor Pharma for USD 18.8bn,Lipscombe noted.Proteomics would also consider spinning out its new test to detect endometriosis,which already has promising patient data and the potential to be a world-firstendometriosis detection test, Lipscombe added, noting that it is seeking co-development partners, ideally global pharmas with automated diagnostics platformsand access to large biobanks.Could still attract suitorsProteomics, which told this news service in 2020 that it could attract suitors as it meetskey development milestones, has become an even more compelling opportunity topotential buyers, given commercialisation of its PromarkerD test and expansion of itspipeline, Lipscombe said, noting that some 18% of the company is owned by boardmembers.Other attributes that make it attractive to potential suitors include its revenue-generating specialist analytical services division, which covers biomarker discovery,biosimilars and PK analysis, and earns some AUD 2m in revenue per annum, he added.While the division adds value to Proteomics as a whole, it could also equally be spun offto facilitate a separate deal, Lipscombe noted.Meanwhile, Proteomics, which recently acquired IP to develop a novel blood test foroesophageal cancer, is continuing to build its pipeline, by acquiring or in-licensing IP forother diseases that lack testing options, especially chronic diseases like Alzheimers orasthma, Lipscombe said. It is evaluating a pipeline of opportunities and welcomesapproaches from advisors with introductions to others globally including Australia, theUS, Europe, and Asia, he said.Proteomics has about AUD 8m in cash, which is expected to be sufficient for currentactivities over the next 18 months, Lipscombe said. Small acquisitions could be fundedwith cash, but it would consider raising equity for larger deals, he added.By Louise Weihart in Sydney
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