ESPOO, Finland--(BUSINESS WIRE)--Mobidiag Ltd., a commercial stage molecular diagnostics company addressing the spread of antimicrobial resistance, today announces that it has entered into a joint venture (‘JV’) agreement with Autobio Diagnostics (‘Autobio’), one of the leading clinical diagnostics companies in China, to commercialise the Novodiag® platform in China. In addition, Mobidiag announces that it has secured a separate €10m equity investment from Autobio. Lynx Financial (HK) Ltd, served as the exclusive financial advisor to Mobidiag in this transaction.
Mobidiag and Autobio will jointly invest €12.3m to establish a joint venture company in China. Autobio will invest €8m in cash to hold 65%, and Mobidiag will invest €4.3m to hold 35%.
Mobidiag will grant to the JV an exclusive license for human infectious disease assays (except for sepsis) for China. Initial activities of the JV will include the registration of the Novodiag® platform and three assays for the rapid detection of respiratory and gastroenteric infections and meningitis with the National Medical Products Administration (NMPA, former CFDA). The JV will also finance the establishment of local facilities in China to manufacture some Novodiag® components and disposables.
Proceeds from the €10m equity investment will be used by Mobidiag to continue growing its product portfolio, accelerate the development of further assays for the Novodiag® system and enhance its manufacturing capabilities, as well as continuing to facilitate Mobidiag’s commercial expansion.
The Novodiag® platform is an innovative molecular diagnostics solution allowing fully automated detection of infectious diseases, including antibiotic resistances. The platform combines real-time PCR and microarray technologies, to allow direct analysis of samples placed in a disposable cartridge. It also allows for comprehensive screening of multiple or single pathogens within approximately one hour, allowing clinicians to be better informed when making time-critical decisions, helping to deliver early treatments and avoid the spread of infection.
Tuomas Tenkanen, CEO of Mobidiag, said “We are excited to enter into this new Joint Venture with Autobio Diagnostics, a leader in IVD field in China. We are confident that their unparalleled access to the rapidly growing Chinese market combined with Mobidiag’s deep expertise in molecular diagnostics will result in a successful partnership that will bring syndromic diagnostic panels to China at an affordable price.
“The €10m equity investment strengthens our cash balance and will allow us to advance our wider strategy to grow sales internationally and launch more innovative and affordable molecular solutions to advance the diagnosis of infectious diseases and antibiotic resistances.”
Yongjun Miao, Chairman of Autobio said “In China, due to a lack of rapid, accurate and low cost diagnosis of pathogens, the timely and effective treatment of infectious diseases is limited and the misuse of antibiotics is not uncommon. Mobidiag’s Novodiag® system is low cost, easy to operate, multi-target, and has a wide application and great market prospects. The cost advantages of setting up Joint Venture in China will further enhance the competitive force of the Novodiag® system. Both Mobidiag’s and Autobio’s teams share the same vision for the Joint Venture, and already have a common culture, and we are excited by the prospects for the future.”
Donald Xu, Managing Partner of Lynx Financial, commented: “This deal epitomizes the current trend in cross-border transactions in the healthcare sectors between China and western countries. The strategy of combining investment with joint venture, will be the playbook for many upcoming and innovative companies to catapult their regulatory and commercialization process, and to compete against the entrenched MNCs, not only in China market, but also the rest of the world.”
Notes to editors
About Mobidiag Ltd
Mobidiag is a commercial stage, fast growing molecular diagnostics company whose affordable, widely applicable and robust technology makes the power of molecular diagnostics available to address the spread of antimicrobial resistance (AMR) by rapid detection of pathogens and their potential resistance to antibiotics. Through its Amplidiag® and Novodiag® solutions, Mobidiag offers a comprehensive range of fast, reliable and cost-effective molecular diagnostic solutions for the detection of infectious diseases to laboratories of all sizes.
Mobidiag is headquartered in Espoo, Finland, with subsidiaries in France, UK and Sweden. To learn more, visit www.mobidiag.com
About Autobio Diagnostics Co, Ltd
Founded in 1998, Autobio has become one of the leading clinical diagnostics companies in China. Autobio specializes in research & development, production, marketing and service of clinical diagnostic products, including immunoassay, microbiology and biochemical products. Autobio provides comprehensive solutions for medical laboratories.
About Lynx Financial
Lynx Financial is a leading boutique Investment bank focusing on Life Sciences and Healthcare sectors. With offices in both China and U.S., Lynx Financial specializes in cross-border transactions involving private placement, M&A, joint venture and licensing.