Quotient Ltd, a commercial-stage diagnostics company, has recently entered into a broad strategic collaboration with Ortho-Clinical Diagnostics Inc (OCD), the global market leader in transfusion diagnostics, for the sale and distribution of Quotient’s MosaiQ platform in the global transfusion diagnostics market.

Under the terms of an exclusive distribution and supply agreement, Quotient retains all rights to commercialize MosaiQ in North America, the European Union, and certain Asia-Pacific territories (excluding Japan) for the donor testing market. OCD acquires exclusive rights to sell and distribute MosaiQ for the global patient testing market (for blood grouping) and the donor testing market in territories not covered by Quotient (for blood grouping and serological disease screening).

Headquartered in Edinburgh, Scotland, Quotient is a commercial-stage diagnostics company committed to reducing healthcare costs and improving patient care through the development and commercialization of innovative tests, currently focused on blood grouping and serological disease screening.

The company’s proprietary MosaiQ technology platform employs a single multiplex consumable to offer a broader test menu than commercially available transfusion diagnostic instrument platforms, including comprehensive antigen phenotyping and antibody identification for all samples tested. Time to result using MosaiQ will be equivalent to or significantly quicker than existing blood grouping methods. With this capability, adoption of MosaiQ should lead to improved patient outcomes by allowing for more comprehensive matching of donor and patient blood. MosaiQ will also represent a highly cost-effective solution for donor and patient testing organizations worldwide.

Cowan

Paul Cowan, Quotient Ltd

According to its agreement with OCD, Quotient will be responsible for the manufacture of all products associated with MosaiQ (instruments, consumables, and ancillary products), and has retained all other commercial rights to MosaiQ. OCD receives a right of first offer if Quotient decides to commercialize MosaiQ with a third party for an application other than blood grouping.

“This strategic collaboration represents a significant milestone in our long and successful working relationship with OCD focused upon the development of innovative new products for the $2.8 billion transfusion diagnostics market worldwide,” says Paul Cowan, Quotient chairman and CEO. “Given OCD’s leadership position in the global transfusion diagnostics marketplace, we are pleased with the confidence they have placed in Quotient to successfully develop MosaiQ.”

Quotient has retained all rights and intellectual property related to the development and manufacture of MosaiQ consumables, which it will supply at its own cost to OCD. Under the companies’ agreement, the transfer price for MosaiQ consumables supplied to OCD will increase as a percentage of net sales, subject to the achievement of agreed-upon revenue targets. In addition, a basis for calculating minimum transfer prices has also been agreed.

“In addition to accelerating the commercialization of MosaiQ in the $1.0 billion global patient testing market and the donor testing market in the developing world and in Japan, this agreement represents an important step forward with our goal of enabling more fully characterized patient and donor blood—ultimately improving patient outcomes,” says Cowan. “We believe our partnership with OCD further validates MosaiQ both technically and commercially, while providing important funding to support its development timelines and objectives.”

Madaus

Martin Madaus, PhD, DVM, Ortho-Clinical Diagnostics

In connection with the transaction, OCD will provide $25 million of funding for development of the MosaiQ system, including a $10 million investment in new Quotient ordinary shares at an issue price of $22.50 per share, and $15 million of 7% redeemable preference shares. On completion of the transaction, OCD will own approximately 2% of Quotient’s fully diluted ordinary share capital. Quotient will also be entitled to receive payments totaling $59 million upon the achievement of specified regulatory approvals and commercial milestones, which primarily relate to the approval and launch of MosaiQ for blood grouping in the US and the EU markets.

“We believe this strategic relationship with Quotient for the innovative MosaiQ technology has the potential to bring completely new solutions to the global transfusion diagnostics market,” says Martin Madaus, OCD chairman and CEO. “As the worldwide leader in blood typing, we are very excited about the opportunity to add Quotient’s novel approach to blood grouping to OCD’s market-leading product and service offerings. Together we will bring valuable and very differentiated offerings to donor collection agencies, hospitals, and reference laboratories worldwide.”

Quotient and OCD have also agreed to explore opportunities to develop and commercialize MosaiQ in other diagnostics applications outside of blood grouping and serological disease screening, utilizing the combined knowledge and expertise of both parties.

For more information, visit Quotient Ltd and Ortho-Clinical Diagnostics.