Genesis Bioventures, Inc. has announced that the Company has signed exclusive worldwide sales, marketing and distribution agreements with Prion Developmental Laboratories Inc. (PDL) to commercialize the recently patented Rapid Prion-Detection Assay tests developed by PDL.
The Rapid Prion-Detection Assay is designed to test for prion diseases, such as mad cow disease, directly at the point-of-kill rather than in a laboratory. The Assay is an easy-to-use rapid test strip that can be administered by trained individuals at slaughterhouses with visual results produced in less than 30 minutes.
"This exclusive sales, marketing and distribution agreement immediately satisfies the short term business objectives of both of our companies and concurrently allows us to focus our resources on continued science, technology and product development opportunities. Through this partnering agreement we will be able to advance the sales, marketing and distribution of our products faster and at lower cost to PDL. We expect the net benefit of this agreement will result in faster time to profitability for the company," said Robert B. Petersen, CEO of PDL.
Dr. Richard Rubenstein, PDL's Chief Scientific Officer, commenting on the agreement with GBI stated, "This agreement offers the opportunity to more rapidly proceed to PDL product sales and distribution and, at the same time, introducing its technology to the marketplace. Furthermore, PDL will now be able to concentrate its efforts on new product and technology developments."
"We are very pleased to announce this agreement with PDL," commented Greg McCartney, Chairman of GBI. "This agreement is the first of many corporate developments we are looking to accomplish this year. The global interest in Bovine Spongiform Encephalopathy (BSE, Mad Cow Disease) is at an all time high. PDL has an outstanding solution to this global problem that, working together, we can bring to market faster."
"As an investor in PDL, we want to help the company management and scientists to be able to focus their efforts in developing world-class, market leading diagnostic products based on their patented technology for human and animal health. Dr. Petersen and Dr. Rubenstein are highly respected scientists in the field. They have demonstrated outstanding capabilities to transform complex science and technology into easy to use commercial products," he continued.
"This agreement represents a strong step toward increasing the commercial opportunities available to both companies," stated Douglas C. Lane of Experigen Management, advisor to GBI. "GBI has a long term vision for PDL, including further investment in the company and continued interest in acquisition and other corporate partnering strategies. The exclusive agreement strengthens GBI's position in its current investment in PDL, which the company expects will produce higher shareholder value."
The worldwide agreement is the aggregate of two agreements between GBI and PDL, one for exclusive rights in Canada and one for exclusive rights in the United States, Japan, Europe and the rest of the world. The agreements specify that GBI has the right to appoint and sell Products to any Sublicensee or similar reseller and both agreements are for a five year period with automatic three year renewals.
Greg McCartney added, "These agreements place GBI and PDL in an extremely favorable position. Approximately 145 million cattle are slaughtered annually in the top 16 beef producing countries alone. It is also imperative for countries like Canada who export a majority of their beef and countries like Japan who import a majority of their beef to demonstrate the safety of their products. The cost and time effectiveness of the PDL test could allow for all animals to be tested, which would ensure food safety with very little added cost to the industry and the end consumer."
The US Patent and Trademark Office recently issued a Notice of Allowance for PDL's Rapid Prion-Detection Assay. PDL has already received USDA approval for its chronic wasting disease assay and is currently focusing on rapid diagnostic tests for mad cow disease and other animal TSEs.