LungLife AI Secures Exclusive US Distribution Deal for LungLB® Test
Why we think this is good
The exclusive license and distribution agreement with Circulogene Theranostics for the LungLB® test in the US represents a significant opportunity for LungLife AI. The agreement includes upfront payments, ongoing royalties, and a potential asset purchase option, providing a clear revenue timeline and reducing funding risk. While there are some execution risks around obtaining the required consents, the partnership with a US diagnostics company and the multi-year revenue visibility are positive factors.
Key Points
- Exclusive license and distribution agreement with Circulogene Theranostics for LungLB® test in the US
- Upfront payment of $375,000, further $375,000 upon completion, and ongoing royalties of 20% (reducing to 15%) of net revenue
- Circulogene has option to acquire licensed IP, equipment, and licenses for $6.2 million
- Agreement subject to obtaining required consents, including shareholder approval
Summary
LungLife AI has entered into an exclusive license and distribution agreement with Circulogene Theranostics for the commercial distribution of its LungLB® test in the US. The agreement includes an upfront payment of $375,000, a further $375,000 upon completion, and ongoing royalty payments of 20% of net revenue for the first year, reducing to 15% thereafter. Circulogene also has an option to acquire the licensed IP, equipment, and licenses for $6.2 million. While the agreement is subject to obtaining required consents, including shareholder approval, the partnership with a US diagnostics company and the multi-year revenue visibility are positive factors.