Veracyte has taken an exclusive global license to NanoString Technologies’ nCounter platform for diagnostic use and has obtained the rights to NanoString’s 510(k)-cleared Prosigna breast cancer prognostic test and research-use LymphMark lymphoma subtyping assay, the companies said after the close of the market.
Under the agreement, Veracyte will pay NanoString $40 million in cash and $10 million in Veracyte common stock, as well as up to $10 million in cash contingent upon the commercial launch of Veracyte diagnostic tests on the nCounter platform.
Veracyte will market and sell the Prosigna assay, both as a kit and through its US CLIA lab. It will also sell future diagnostic tests developed for the nCounter platform and distribute the nCounter Flex system for diagnostic purposes.
NanoString retains the exclusive rights to commercialize nCounter products for research and investigational uses and to develop its other platforms for diagnostic use, including the GeoMx Digital Spatial Profiler and Hyb & Seq technology.
NanoString will also manufacture the kits for Prosigna, LymphMark, and new tests developed by Veracyte or its partners for the nCounter platform. NanoString will sell diagnostic assay kits and nCounter systems to Veracyte at preset prices under supply agreements between the firms.
Veracyte believes that the transaction will allow it to access a global market for its tests and to expand its test menu. Under the agreement, the firm has exclusive global rights to develop and commercialize diagnostic tests on the nCounter Flex system, which is cleared by the US Food and Drug Administration and allows for the simultaneous analysis of RNA, DNA, or protein targets from up to 800 genes.