Prophase labs acquires rights to novel esophageal cancer test

Garden city, ny, dec. 19, 2022 (globe newswire) -- prophase labs, inc. “prophase” (nasdaq: prph), a growth oriented and diversified diagnostics, genomics and biotech company, today announced that it has entered into an asset purchase agreement to acquire from stella diagnostics, inc. (“stella”) world-wide exclusive rights to stella's be-smart esophageal pre-cancer diagnostic screening test and related intellectual property assets for approximately $4.5 million dollars, comprised of approximately $3.5 million in cash and $1 million in prophase common stock. under the terms of the agreement, an additional $2 million of company common stock may be issued to stella in the future upon the achievement of a revenue-based commercial milestone within the five-year period following the closing. stella will also receive a 5% royalty based on adjusted gross margin generated from the commercialization of the intellectual property acquired from stella. the transaction is subject to approval by stella shareholders and is expected to close in early january 2023. thinkequity acted as advisor to prophase labs in the transaction.
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