Prometheus Enters Oncology Market via Agreement With Rosetta Genomics

Prometheus Laboratories Inc. (San Diego, CA, USA) a specialty pharmaceutic and diagnostic company, and Rosetta Genomics Ltd. (Rehovot, Israel) a molecular diagnostic company, announced the execution of a license and collaboration agreement under which Rosetta grants Prometheus U.S. rights to three recently introduced, microRNA-based cancer diagnostic tests: miRview mets, miRview squamous and miRview meso.

MiRview mets is designed to accurately identify the primary tumor site in patients presenting with metastatic cancer, as well as in patients whose tumor has not been identified and consequently has been labeled Cancer of Unknown Primary (CUP); miRview squamous uses a single miRNA to differentiate squamous from nonsquamous non-small-cell lung cancer (NSCLC); and miRview meso leverages microRNA's high-specificity biomarkers to differentiate mesothelioma, a cancer connected to asbestos exposure, from other carcinomas in the lung and pleura, a medically and legally important differential diagnosis.

Under the terms of the license agreement Rosetta will receive milestones, or research and development funding, as well as royalty payments on net sales in the U.S. Under the terms of a separate stock purchase agreement, Prometheus will also make an equity investment in Rosetta of U.S. $8 million at $4.00 per ordinary share, representing an approximate 41% premium over the closing price of Rosetta stock over three business days. The license and collaboration agreement and the stock purchase agreement are expected to close before the end of April 2009 and are subject to customary closing conditions.

In addition, Prometheus and Rosetta have agreed to collaborate to develop two new microRNA-based gastroenterology tests, which may result in additional, success-based milestones and royalty payments to Rosetta. Funding for the development of these gastroenterology tests will be provided by Prometheus.

Prometheus Laboratories Inc. is a specialty pharmaceutic and diagnostic company committed to developing and commercializing novel pharmaceutic and diagnostic products to help physicians individualize patient care. Prometheus is a leader in applying the principles of personalized medicine to the diagnosis and treatment of gastrointestinal diseases and intends to apply these principles to oncology.

Rosetta Genomics is a molecular diagnostics company committed to develop and commercialize products based on microRNAs for targeted therapy and preventive medicine. Rosetta developed a unique methodology to find microRNAs in body fluids and other clinical samples, and discovered in the past few years hundreds of novel microRNAs that can be used as important biomarkers and drug targets.

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