Late last month, Avant
Diagnostics, Inc. (OTCQB: AVDX) made headlines when it announced plans to merge
with Amarantus Diagnostics, a wholly-owned subsidiary of Amarantus Bioscience
Holdings, Inc. (OTCQX: AMBS). Under the terms of the previously announced
Letter of Intent, Avant will issue 80 million shares of common stock to
Amarantus upon execution of definitive merger agreements, which will represent
roughly 45 percent of Avant’s post-merger common stock. An additional 10
million shares of common stock will be transferred upon achievement of
predetermined sales milestones. According the company’s news release, the
transaction is expected to be finalized in the second quarter of 2016, setting
the stage for tremendous opportunities to progress Avant’s highly valuable
diagnostic assets in the areas of oncology and neurology.
“After exploring numerous avenues
for implementing Avant’s OvaDx® development and commercialization strategy, it
is clear that combining Avant’s and Amarantus’ diagnostic assets and core
competencies forms a platform that provides maximum value to our collective
shareholders,” Gregg Linn, president and chief executive officer of Avant,
stated in a news release.
The operational synergies between
the two companies are expected to create significant opportunities for
financial growth following completion of the proposed merger. Both Amarantus
Diagnostics and Avant possess assets with the potential to provide early and
actionable information to physicians and researchers by harnessing the power of
biomarkers based in the immune system in disease areas that previously yielded
results of limited value. Avant’s OvaDx® immuno-oncology diagnostic assay, for
example, represents a significant improvement in the screening and diagnosis of
ovarian cancer. Upon commercialization, it’s estimated that the market
opportunity for OvaDX could be $50 million annually as a diagnostic test for
ovarian cancer, and it could expand to over $2 billion if the test were to be
approved as a generalized screening and/or monitoring tool.
“The collective diagnostic assets
will create a truly unique opportunity to implement our respective missions of
saving and enhancing lives through early detection of disease in oncology and
neurology,” continued Linn. “The combined companies will enjoy additional
benefits by creating a compelling platform to showcase the power diagnostics
have to reduce costs and improve outcomes in the healthcare system.”
Amarantus Diagnostics’ development
pipeline is expected to have similarly expansive market potential upon
commercial approval. Its MSPrecise® neuroimmunology-based next-generation
sequencing diagnostic assay for multiple sclerosis (MS), which is expected to
greatly improve the diagnostic accuracy rate in MS while reducing costs for
payers, will target a $200 million market, with the potential to address
additional markets as a monitoring tool to measure the efficacy of drug
treatment over time. Amarantus is also developing its innovative LymPro Test®,
a neuroimmunology-based flow cytometry assay, for the early detection of
Alzheimer’s disease.
Gerald E. Commissiong, president
and chief executive officer of Amarantus, summarized the two companies’
optimism regarding the tremendous commercial potential of the merged company in
a recent news release.
“We believe that combining these
state-of-the-art technologies with a deep understanding of chronic disease
rooted in immunology will produce a world-class diversified immuno-oncology and
neuroimmunology focused diagnostics company able to deliver actionable
information to physicians seeking to provide the most tailored treatment
options for patients, while also assisting the research community in developing
new medicines for these devastating disorders,” he said.
For more information, visit the
company website at www.avantdiagnostics.com
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