Oncocyte (OCX) - Get OncoCyte Corp. Report shares blasted higher Tuesday after the cancer detection company said it has licensed a lung cancer test to China’s Burning Rock Biotech BNR for use in that country.
The test is called DetermaRx and 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,” Irvine, Cal.-based Oncocyte said in a statement.
Oncocyte recently traded at $2.90, up 36.79%, leaving it with a gain of about 31% for the year. Burning Rock recently traded at $24.00, down 2.64%, but has climbed roughly 21% so far this year.
“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,” Oncocyte said.
“Oncocyte will also receive ongoing royalties per patient tested with DetermaRx," the company said. "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.”
Oncocyte didn’t specify any dollar amounts.
“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.”
Further, “we continue to see strong growth in all of our commercial metrics thus far in the fourth quarter,” said Oncocyte Chief Executive Ron Andrews.