Generex signs letter of intent with Hema Diagnostic Systems
Under the terms of the LOI, Generex will gain a 51 percent equity interest in HDS in exchange for a purchase price of $15 million. Additionally, Generex will receive a royalty on gross sales of the product (capped at $50 million).
HDS has designed, engineered and manufactured a series of new and innovative rapid diagnostic tests for infectious diseases. Currently, HDS provides a series of rapid tests for such infectious diseases as HIV, tuberculosis and malaria.
"We believe that the HDS infectious disease detection technologies can form a synergistic adjunct to the Antigen Express proprietary infectious diseases vaccine platform technology, with prospects for efforts on the Ebola virus as well as avian and swine influenzas, where Antigen Express has already undertaken clinical work, creating new and expanded market opportunities for us both," a Generex news release read.
Presently, HDS is also preparing for a new fourth generation HIV test for submission to the FDA.
"We look forward to embarking on this exciting new endeavor, an opportunity to leverage the scientific work already undertaken by Antigen Express in vaccines for infectious diseases and to access the presence and experience of Hema Diagnostic Systems in the international marketplace," Mark Fletcher, Generex president and chief executive officer, said.
The LOI is a first step in discussions between Generex and HDS; it does not guarantee any partnerships or further actions or formal agreements.
Generex specializes in research, development and commercialization of drug delivery systems and technologies.
For more information, visit www.generex.com.