Oncimmune Acquires Protagen to Advance Discovery of Novel Cancer Immunogenic Proteins and Enhance EarlyCDT Diagnostic Platform

VCBeat (WeChat Official Account: vcbeat) has learned that cancer diagnostics company Oncimmune announced on March 19, 2019, that it had acquired biotechnology company Protagen for £4.1 million. Headquartered in Nottingham, UK, Oncimmune plans to leverage Protagen’s technology to further develop its CDT early-stage lung cancer diagnostic technology. Additionally, Oncimmune has already initiated early detection trials for lung cancer and liver cancer.

The final acquisition price will also depend on various other factors. Oncimmune will pay at a share price of 156 pence per share, representing a 71% premium over Protagen’s closing share price on March 18, 2019. Oncimmune will issue approximately 1.6 million ordinary shares before the agreed deadline, accounting for about 62% of the maximum consideration in its ordinary shares.

Qiagen is an investor in Protagen and will also become an investor in Oncimmune following the completion of the acquisition. Qiagen may receive up to 862,179 shares to enable Protagen to repay a convertible loan, while also paying €2.6 million in accrued interest to Protagen.

Protagen, headquartered in Dortmund, Germany, relies on its core technology platform—the Serum Biomarker Discovery System—which utilizes human protein arrays to identify antibody markers across various conditions. Historically focused on researching human autoimmune diseases, Protagen has recently shifted its efforts toward identifying biomarkers for cancer immunotherapies that are effective for patients.

“The acquisition of Protagen will accelerate Oncimmune’s product discovery process, increase our chances of identifying previously unknown immunogenic proteins, and enable the transfer of our technology through complementary capabilities. This acquisition is a key component of Oncimmune’s strategy for the next three years,” said Adam Hill, Chief Executive Officer of Oncimmune, in a statement.

Oncimmune stated that it will retain the laboratory and scientific team in Dortmund as a research center. The company’s branches in Nottingham and Kansas will be responsible for product research and development, validation, and manufacturing for the Oncimmune Group. Oncimmune indicated that the expenditure from this acquisition is expected to be recouped within 12 months, achieving “cash neutrality.”

In 2018, Protagen reported revenue of €600,000 and an operating loss of €1.9 million. As of September 30, 2018, the company’s net assets stood at €2.9 million. Protagen has completed six rounds of financing, raising a total of $36 million.

Founded in 2006 and headquartered in Nottingham, UK, Oncimmune is an industry leader in the field of early cancer detection, dedicated to advancing early diagnosis through its proprietary antibody-based testing technology. The company’s Chief Scientific Officer is John Robertson, MD, Professor of Surgery at the University of Nottingham, under whose guidance Oncimmune conducts its ongoing product development. Oncimmune’s mission is to develop early cancer detection tests capable of identifying more than 90% of solid tumor cancers—which account for 70% of all cancers—including lung, breast, colorectal, prostate, gastric, pancreatic, and ovarian cancers.

Protagen, founded in 1997, is a leading German provider of services, products, and software solutions for protein research. Protagen maintains offices in Dortmund, Germany, and Chester, New Jersey, USA. With an experienced and proactive team, Protagen delivers high-quality products and services compliant with Good Manufacturing Practice (GMP) standards. The UNIcloneA protein expression library patented platform is one of Protagen’s innovative technological offerings; this highly efficient platform enables the development of novel diagnostic technologies based on blood autoantibody markers.

(Compiled by Wang Shuijing)