http://www.genomeweb.com/clinical-genomics/med-biogene-poised-take-precision-therapeutics-arbitration-over-milestone-paymen?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+genomeweb%2Fgenomeweb-daily-news+(GenomeWeb+Daily+News) Anyone know anything about this?
Something about precision dragging their feet on milestone payment to Med Biogene per their agreement re Genefx lung commercial launch. Was supposed to happen over a year ago. Not sure what's happening at PTI. Anyone in the loop know what 's really going on with this test?
Partnership with Precision Therapeutics Current Status As previously announced, MBI's commercial partner, Precision Therapeutics, Inc. has received regulatory approval of GeneFx Lung under CLIA (Clinical Laboratory Improvement Amendments of 1988), the United States federal regulations applicable to clinical laboratory testing. With this approval, Precision may undertake commercial testing of GeneFx Lung in its CLIA-certified clinical laboratory in Pittsburgh, Pennsylvania. The long-term commercial success of GeneFx Lung will depend largely upon the extent to which government payors, specifically Medicare, and other third-party payors reimburse the test. Precision has advised MBI that, in advance of the commercial launch of GeneFx Lung, it is engaging in further dialogue with payors, specifically Medicare, to better understand the current landscape and the specific needs of relevant payors as they apply to GeneFx Lung. As such, Precision further advised MBI that the timing of the commercial launch of GeneFx Lung will be established by Precision in light of these considerations. Certain other information regarding Precision's commercialization and reimbursement strategy is strategically sensitive and, as a result, MBI is not in a position at this time to disclose further information. Agreement with Precision - MBI Considering Options to Enforce Payment of First Milestone Under the commercialization agreement between MBI and Precision, MBI is eligible to receive from Precision up to $1.0 million in milestone payments upon the happening of certain events, all of which are credited against future royalties that may be owed to MBI by Precision. MBI believes that the first milestone payment of $500,000 (i.e. $300,000 due now and $200,000 due at the end of the year) relating to Precision's commercialization obligations of GeneFx Lung is owing by Precision. Management of MBI recently met with management of Precision at its offices in Pittsburgh to articulate this position and is currently considering its options to enforce MBI's contractual rights under the commercialization agreement, including, if necessary, initiating binding arbitration proceedings.
