Benzinga | Jan 26, 2021 09:02AM EST

Qualigen Therapeutics Announces Completion Of Milestone Related To License and Technology Transfer Of Its FastPack Diagnostics Products In China, Triggering Payment Obligation From Yi Xin Zhen Duan Jishu

CARLSBAD, Calif., Jan. 26, 2021 /PRNewswire/ -- Qualigen Therapeutics, Inc. (NASDAQ:QLGN), a biotechnology company focused on developing novel therapeutics for the treatment of cancer and viral diseases, announces achievement of a milestone event which triggered a payment obligation from Yi Xin Zhen Duan Jishu (Suzhou) Ltd. of Suzhou, China (Yi Xin) to Qualigen. The milestone event pertained to the initiation of technology transfer of Qualigen's core FastPack(r) System, a rapid and highly accurate immunoassay testing system consisting of the FastPack Analyzer and the FastPack single-use, disposable test pouch.

Under the terms of an agreement announced in October 2020, Yi Xin will develop, manufacture and sell new generations of diagnostic test systems based on Qualigen's core FastPack(r) "laboratory in a pouch" technology, which includes high throughput diagnostic systems. In addition, Yi Xin will have the rights to manufacture and sell Qualigen's current generations of rapid point-of-care FastPack diagnostic products in China. The agreement called for net cash payments to Qualigen in the fourth quarter of calendar 2020 and the first quarter of calendar 2021 totaling in the mid- to high-hundreds of thousands of dollars, and Qualigen is also eligible to receive low- to mid-single-digit royalties on net sales.

"Yi Xin provides entr?e to the China market for our patented FastPack diagnostics product line and we are encouraged by the strong start to this alliance," stated Michael Poirier, Chairman, Chief Executive Officer and President of Qualigen. "This collaboration represents an expansion opportunity with additional resources to grow the FastPack line in an efficient manner while we advance our therapeutics pipeline focused on the treatment of cancer and viral-based diseases toward clinical trials this year."

"Accurate testing at the point of patient care is becoming increasingly important across China to achieve better patient outcomes and utilize healthcare resources more efficiently. We are looking forward to launch the current FastPack product and developing new generations of the FastPack system that include a high-volume system analyzer for use in large hospitals and reference laboratories," said Peng Zhou, President and Chief Executive Officer of Yi Xin.