In an attempt to expand its companion diagnostics portfolio,
Qiagen
N.V.
(
QGEN
) entered into a new co-development agreement with global
pharmaceutical product manufacturers
Eli Lilly and Company
(
LLY
). Based on this "master collaboration", the companies will form
a partnership on all the future projects to develop and
commercialize companion diagnostics for pairing with Lilly's
investigational and approved medicines across all therapeutic
areas. Financial terms of the agreement have not been
disclosed.
Qiagen expects this deal to be accretive in terms of expanding
the scope of use of its companion diagnostics assay as well as
simultaneously developing diagnostic products with the Lilly
compounds.
This agreement forms the second landmark in Qiagen's long
standing relationship with this pharmaceutical major. Earlier in
2011, both the companies entered into a partnership for
co-development of companion diagnostic for an early stage
investigational compound known as a Janus kinase 2 (JAK2)
inhibitor.
Presently, Qiagen offers a broad range of tests covering more
than 30 biomarkers, which are already marketed in select regions
of the world for use in personalized healthcare. The company also
works in collaboration with more than 15 pharma companies in
order to co-develop companion diagnostics. Like several others,
this latest companion diagnostic collaboration with Lilly will
offer a cost-effective way to maximize the value and benefits of
potential new medicines, while reducing the risks in medicine
development.
We are encouraged by Qiagen's good progress and strategic
moves, which complement its objective to leverage leadership in
Sample and Assay Technologies across its four customer classes.
Last month, the company made a regulatory submission of its
therascreen EGFR RGQ PCR Kit a.k.a therascreen EGFR test to the
U.S. Food and Drug Administration (FDA) as a proposed companion
diagnostic to guide treatment with Afatinib
.
Afatinib or Tomtovok (proposed name) is a new investigational
oncology compound by the German drug major, Boehringer
Ingelheim.
Companion diagnostics is currently gaining significant
traction and peers like
Myriad Genetics
(
MYGN
) are establishing themselves as strong players in this market.
However, this latest move on Qiagen's part is expected to
strengthen its foothold in this market by combining its
excellence in companion diagnostics with Lilly's strong
scientific and global background.
Qiagen currently retains a Zacks Rank #3 (Hold). Other medical
stocks such as
ResMed
(
RMD
) carries a Zacks Rank #1 (Strong Buy) and warrants a look.
LILLY ELI & CO (LLY): Free Stock Analysis
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