US-based genomic sequencing and analytics solutions provider Personalis and health technology company Tempus AI have expanded existing commercial partnership.
In November last year, companies agreed to collaborate to bring ultra-sensitive minimal residual disease (MRD) testing to market, and launched it at the recent ASCO meeting.
Under the existing collaboration, Tempus AI served as an exclusive commercial partner for Personalis’ ultra-sensitive tumour informed MRD test product.
The two companies targeted broad patient adoption in breast and lung cancers and for immunotherapy monitoring across all solid tumours.
They agreed to expand their partnership based on positive reactions from existing collaboration.
Under the expanded collaboration, Tempus AI will advance its commercialisation efforts over the first two years and will invest around $36m into Personalis.
Personalis will increase the number of patient samples it will accept over the respective period.
Personalis CEO Chris Hall said: “We are pleased that our early access program is proceeding well and demand is strong. We believe the expansion of the relationship with Tempus will allow us to better capitalize on the opportunity.”
Under the terms of the agreement, Tempus AI will exercise its existing warrants to buy 9.2 million shares of Personalis common stock, at an average purchase price of $2 each.
The health technology company will also purchase an additional 3.5 million shares of common stock at a price per share of $5.07, the last reported closing price of Personalis’ common stock.
The transaction will result in Tempus AI acquiring around 19.3% of Personalis’ outstanding common stock upon closing.
In June this year, Tempus AI received the US Food and Drug Administration (FDA) 510(k) approval for its AI-powered diagnostic tool to identify at-risk patients with atrial fibrillation (AF).
The AI-powered algorithm, dubbed Tempus ECG-AF, is designed to analyse recordings of 12-lead electrocardiogram (ECG) devices, said the health technology company.
