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Rapid Pathogen Screening, Inc. Restructures Nicox Licensing Agreement

Rapid Pathogen Screening, Inc. (RPS®) announced the restructuring of the North American licensing rights to the AdenoPlus® test as well as two diagnostic tests in development. Effective August 1st, 2014, RPS will resume responsibility for marketing these tests to eye care professionals in the United States (U.S.) and all medical professionals in Canada. RPS already manufactures and markets the AdenoPlus test to aid in the rapid diagnosis of Adenoviral conjunctivitis (pink eye) to primary and urgent care professionals in the U.S. Nicox will continue to commercialize AdenoPlus and the previously licensed development products in all markets outside North America.

In 2012, RPS and Nicox entered into a licensing agreement giving Nicox access to RPS’s innovative diagnostic tests. These tests are based on RPS’s proprietary technology and enable the rapid and accurate in-office diagnosis of specific ocular diseases and conditions. Now, AdenoPlus and the future development products will be marketed to eye care professionals through RPS’s dedicated eye care team, which has extensive industry experience and currently markets InflammaDry®, a novel test for dry eye disease. The team will leverage and support this expanded product portfolio, accelerating access for both existing and new customers.

“RPS built out a robust commercial sales organization targeting eye care professionals for the successful launch of InflammaDry. We view the AdenoPlus and InflammaDry tests as synergistic products that both aid in the in-office diagnosis of common diseases affecting the ocular surface,” said Robert Sambursky, MD, chief executive officer and president of RPS. “Reacquiring the rights to AdenoPlus and future diagnostics in North America expands our eye care team’s product offerings, while maintaining a strong continued collaboration with Nicox outside North America.”

Nicox has paid a total of $3 million to RPS in license and option fees and has contributed to half of the costs of the two products in development. Under the amended agreement, Nicox will no longer contribute to development costs but may pay additional development milestones, up to a potential maximum of $525,000, related to approval of products outside North America. Nicox will continue to purchase manufactured products from RPS at a discounted price and will pay single digit royalties to RPS on sales of all products licensed outside North America. Nicox will no longer market these products in the U.S. or Canada but retains a co-promotional option in these markets, with complementary therapeutics that Nicox may obtain in the future. No additional rights to other RPS products have been transferred. RPS will pay Nicox single digit royalties on sales of the relicensed products in the defined markets within the U.S. and Canada.

AdenoPlus – a rapid, in-office test that can help detect Adenoviral conjunctivitis using a small tear sample – was created to aid in the diagnosis of pink eye. Adenoviral conjunctivitis is highly contagious and can result in prolonged morbidities even after the primary infection has resolved. Due to the overlap in signs and symptoms with other causes of acute conjunctivitis, healthcare providers often treat all conjunctivitis cases with topical antibiotics, which are ineffective against the viral form of the infection. As a result, this course of treatment can lead many patients to return to school, work, or daycare while still contagious. The AdenoPlus test can be performed by a nurse or technician and provides a result in only ten minutes, making the correct diagnosis available at the time of the office visit rather than relying only on overlapping signs and symptoms or waiting for results from a laboratory. The speed and accuracy of the test results help clinicians make an accurate diagnosis and provide the appropriate treatment before the patient leaves the office.

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