NEW YORK--()--Med Biogene Inc. (TSX Venture: MBI), a Vancouver-based life sciences company, has been charged in Supreme Court for the County of New York with breach of agreement, violation of a confidentiality agreement and misuse of proprietary information, among other wrongdoings.
“We have no choice but to bring this action against MBI, with whom we negotiated in good faith for two months towards an agreement that would have significantly benefited both of our companies.”
The charges, brought by Signal Genetics LLC and its subsidiary Respira Health LLC, stem from MBI’s breach of its agreement to grant Signal a not less than ten-year exclusive, worldwide license to use MBI’s LungExpress DX technology.
Signal Genetics and Respira are providers of detailed personalized diagnostic results that assist cancer patients and their physicians in determining the best course of treatment. MBI’s LungExpress DX technology is a product complementary to Signal’s own products.
On January 28, 2011, the parties entered into a term sheet to grant an exclusive license to Signal. Under the provisions of the term sheet, MBI agreed not to negotiate or even discuss a similar transaction or a sale of MBI with another party during a period of exclusivity that would end on February 4, 2011. MBI also agreed to continue to maintain the confidentiality of the information Signal had provided to MBI.
The Complaint alleges that MBI breached the agreement almost immediately after executing the term sheet and now apparently has reached an agreement with another company to grant it a license in breach of MBI’s obligations to Signal.
Signal Genetics stated: “We have no choice but to bring this action against MBI, with whom we negotiated in good faith for two months towards an agreement that would have significantly benefited both of our companies.
“Signal is significantly harmed by MBI’s actions, as we lose the benefit of the licensing rights to MBI’s technology and the confidentiality of our critical information.”
The case against MBI is detailed in a complaint filed with the court in New York. The complaint requests judgment requiring MBI to grant Signal an exclusive, worldwide license to use MBI’s technology on terms set forth in the term sheet; damages of an amount to be determined; and further relief.
About Signal Genetics
Signal Genetics is a privately held predictive genetic testing company focused on helping cancer patients. The goal of Signal Genetics is to provide cancer patients and their physicians with novel and innovative insights into their disease, including predictive outcome of disease stage, odds of relapse, and the optimal treatment regimen based on their specific genetic expression profile. Additional information is available at www.signalgenetics.com.