Horizon Discovery Group said today it has signed development agreements with three undisclosed “global” developers of companion diagnostic tests totaling an initial $3.3 million.
Horizon will develop new and/or supply existing reference standards for the development and validation of new companion diagnostics—as well as for potential inclusion in on-market diagnostic kits under Original Equipment Manufacture (OEM) agreements.
Under the agreements—which include an extension of a pre-existing program—Horizon will provide reference standards for genomic and immunohistochemistry-based standards.
The accuracy and effectiveness of the diagnostic tests will be benchmarked using Horizon’s reference standards, the company said.
“For these prominent diagnostic companies to choose to collaborate with Horizon underlines our expertise and leadership in the creation of reliable diagnostic reference materials, increasingly critical for precise cancer diagnosis,” Horizon Discovery Group CEO Darrin M Disley, Ph.D., said in a statement.
Horizon said the three partnerships are in line with its strategy of generating sustainable, scalable core revenue growth. Reagent development and supply of materials for diagnostic test validation programs provide near-term revenue, while opening up avenues for future OEM relationships.
Those relationships, in turn, deliver visible and predictable revenues as Horizon’s reference standards are integrated into the diagnostic work-flows and kits of partners, according to the company.
Horizon will recognize $3.2 million of revenue from the agreements this year, and the remainder next year.
“These deals are part of larger collaborations with the companies involved and they are expected to lead to additional revenue over time,” Dr. Disley added. “This represents a continuation of our progress in creating a greater network of trusted partnerships and in finding new channels to market for our products.”
Headquartered in Cambridge, U.K., Horizon has more than 1,200 customers across more than 50 countries. According to the company, those customers include major pharmaceutical, biotechnology, and diagnostic companies as well as leading academic research centers.
Horizon’s core capabilities are built around its translational genomics platform, a high-precision and flexible suite of gene-editing tools designed to alter almost any endogenous gene sequence of human or mammalian cell-lines.