NeoGenomics and Power3 Form CRO

NeoGenomics, a Fort Meyers, FL-based lab that specializes in cancer diagnostic testing, announced on Wednesday that it was teaming up with protein biomarker maker Power3 Medical Products to form a joint venture contract research organization. The purpose of the CRO is to develop blood serum-based diagnostic tests around the protein biomarkers identified by Power3 (there currently are 523). Power3 has agreed to license to the CRO all of its intellectual property on a non-exclusive basis for selected commercial applications, as well as provide certain management personnel. For NeoGenomics's part, it will provide access to cancer samples, management, sales and marketing personnel, laboratory facilities and working capital. NeoGenomics will own a minimum of 60% of the new venture, expected to be launched in the fourth quarter, and will provide $200,000 of working capital to Power3. NeoGenomics has two options to increase its stake in Power3 to up to 60% of the fully diluted shares over the next 18-20 months.