Freenome Partners with Exact Sciences to Launch New Colorectal Cancer Blood Test

Freenome’s Licensing Agreement with Exact Sciences to Introduce a New Test for Colorectal Cancer

Announcement

Freenome, a leading biotechnology company developing an early cancer detection platform, has entered a licensing agreement with Exact Sciences to elevate its marketization of its colorectal (CRC) blood-related screening test, consisting of the US’s commercial rights and the primary technology. Freenome reserved its rights for the CRC blood test, and integration with other cancer screening tests will be available for lung cancer and over ten additional initial cancer indications that the company is launching.

Role of Exact Sciences in this Partnership

The exact sciences will leverage market adoption of the freenome’s CRC blood test by elevating its marketing infrastructure to develop seamless access to around 400 health systems with integrated EMR. Including more than 865 in-network payers and 260,000 ordering physicians and engagements with a vast patient population who are Cologuard test prescribed. Freenome will on forefront lead the test processing, return, and analysis of results while continuously working with the healthcare companies to address patients who are qualified for multiple tests.

Agreement Terms

The upfront payment of $75 million and $200 million in profitable payments will be associated with the FDA’s approval of the CRC blood test. Upon receiving approval $500 million will be equally initiated as per planned if the test rates as an A or B test in the United States Preventive Services Task Force (USPSTF) under guidelines. The royalties on test sales will be around 10% on progressively hitting a margin target and $20 million in joint R&D development funding, on which the expense will accelerate the technology for three years. Also, an equity investment of $50 million. Freenome will have access to every multimodal data from patients' end to fuel future AI/ML models throughout multiple cancer indications.

Views and Statements from the Company’s Experts

PhD, chief executive officer of freenome, Aaron Elliott, said, “We are thrilled to sign this agreement with Exact Sciences that demonstrates a crucial moment in our mission and mission towards detecting cancer nearly at the earliest stages of treatment. With this licensing agreement, our CRC blood test, which is first in class, if it receives approval then will be accessible soon to millions of patients. In addition, freenome will have rights to perform on a commercial platform, and integrate and participate in primary care workflows to advance the development of our multiomic early cancer detection platform, along with the capital.”