Avant Diagnostics, Inc. (AVDX) Positioned to Expand Clinical Avant Diagnostics, Inc. (AVDX) Positioned to Expand Clinical Pipeline following Entry into Letter of Intent to Merge with Amarantus Diagnostics
Late last month, Avant Diagnostics, Inc. (OTCQB: AVDX) made headlines when it announced plans to merge with Amarantus Diagnostics, a wholly-owned subsidiary of Amarantus Bioscience Holdings, Inc. (OTCQX: AMBS). Under the terms of the previously announced Letter of Intent, Avant will issue 80 million shares of common stock to Amarantus upon execution of definitive merger agreements, which will represent roughly 45 percent of Avant’s post-merger common stock. An additional 10 million shares of common stock will be transferred upon achievement of predetermined sales milestones. According the company’s news release, the transaction is expected to be finalized in the second quarter of 2016, setting the stage for tremendous opportunities to progress Avant’s highly valuable diagnostic assets in the areas of oncology and neurology.
“After exploring numerous avenues for implementing Avant’s OvaDx® development and commercialization strategy, it is clear that combining Avant’s and Amarantus’ diagnostic assets and core competencies forms a platform that provides maximum value to our collective shareholders,” Gregg Linn, president and chief executive officer of Avant, stated in a news release.
The operational synergies between the two companies are expected to create significant opportunities for financial growth following completion of the proposed merger. Both Amarantus Diagnostics and Avant possess assets with the potential to provide early and actionable information to physicians and researchers by harnessing the power of biomarkers based in the immune system in disease areas that previously yielded results of limited value. Avant’s OvaDx® immuno-oncology diagnostic assay, for example, represents a significant improvement in the screening and diagnosis of ovarian cancer. Upon commercialization, it’s estimated that the market opportunity for OvaDX could be $50 million annually as a diagnostic test for ovarian cancer, and it could expand to over $2 billion if the test were to be approved as a generalized screening and/or monitoring tool.
“The collective diagnostic assets will create a truly unique opportunity to implement our respective missions of saving and enhancing lives through early detection of disease in oncology and neurology,” continued Linn. “The combined companies will enjoy additional benefits by creating a compelling platform to showcase the power diagnostics have to reduce costs and improve outcomes in the healthcare system.”
Amarantus Diagnostics’ development pipeline is expected to have similarly expansive market potential upon commercial approval. Its MSPrecise® neuroimmunology-based next-generation sequencing diagnostic assay for multiple sclerosis (MS), which is expected to greatly improve the diagnostic accuracy rate in MS while reducing costs for payers, will target a $200 million market, with the potential to address additional markets as a monitoring tool to measure the efficacy of drug treatment over time. Amarantus is also developing its innovative LymPro Test®, a neuroimmunology-based flow cytometry assay, for the early detection of Alzheimer’s disease.
Gerald E. Commissiong, president and chief executive officer of Amarantus, summarized the two companies’ optimism regarding the tremendous commercial potential of the merged company in a recent news release.
“We believe that combining these state-of-the-art technologies with a deep understanding of chronic disease rooted in immunology will produce a world-class diversified immuno-oncology and neuroimmunology focused diagnostics company able to deliver actionable information to physicians seeking to provide the most tailored treatment options for patients, while also assisting the research community in developing new medicines for these devastating disorders,” he said.
For more information, visit the company website at www.avantdiagnostics.com
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