CareDx Inc.'s unit CareDx Pty Ltd. agreed to acquire certain assets, including intellectual property, of Conexio Genomics Pty Ltd., an affiliate of Illumina Inc.
The assets being sold are related to Conexio's business of the manufacturing and selling of sequencing-based human leukocyte antigen typing products.
CareDx Pty will pay Conexio up to $232,792 for finished goods, on or before July 1, 2017. Conexio will also receive $156,159 from the company, upon the earlier to occur of Dec. 31 and the 30th day after CareDx Pty's first productive use of unfinished inventory purchased in the acquisition.
In addition, CareDx Pty will make quarterly payments to Conexio equal to 20% of the gross revenue derived by CareDx Pty and its affiliates from the sale of products using the acquired assets until a total of $735,000 has been paid. It will also assume all obligations under the lease of the Conexio facilities and all liabilities for product warranty claims relating to products sold before and including the completion date, up to a maximum amount of $35,000.
Conexio will also grant CareDx Pty a license to use certain software, technology and trademarks. Moreover, Illumina Australia Pty Ltd. will provide CareDx Pty access to the services of an employee for 12 months after the deal closing to assist with the transfer of manufacturing operations and overall expertise associated with the assets purchased.
Completion of the acquisition is subject to various conditions, including the novation or assignment of the lease over the premises located in Freemantle, Western Australia, to CareDx Pty.