The Life Sciences team advised Freenome on an exclusive license agreement with Exact Sciences to advance the commercialization of its colorectal (CRC) blood-based screening test, including the U.S. commercial rights and the underlying technology. Freenome retains the rights for its CRC blood test when it is ordered in combination with additional cancer screening tests, including for lung and more than 10 other initial cancer indications the company is pursuing.
The terms include: an upfront payment of $75 million; $200 million in milestone payments associated with FDA first-line approval of the CRC blood test and a future test version; $500 million if the test is rated as an A or B test in the United States Preventive Services Taskforce (USPSTF) guidelines; royalties on test sales (expected to ramp to 10% once gross margins hit certain targets); $20 million in funding for joint R&D development expenses leveraging the technology for three years; and an equity investment of $50 million. Freenome will also have access to all multimodal data from patients to power future AI/ML models across multiple cancer indications.
Freenome is breaking barriers to early cancer detection with a suite of blood-based tests built on its multiomics platform. The company recognizes that no single technology can identify every cancer due to the disease’s inherent heterogeneity. Freenome’s multimodal approach combines molecular biology and assays with computational biology, machine learning and multiple data types to tune into cancer’s subtlest cues, even at the earliest stages of the disease. With the convenience of a standard blood draw, Freenome aims to empower everyone to access recommended cancer screenings. The company is partnering with healthcare organizations and population health decision-makers to integrate its technology and software platform, making cancer detection easier and more accessible.
The Goodwin team was led by Shane Albright, Sarah Ashfaq, Katie Hand, William Jackson and Kingsley Taft, and also included Jennifer Ford, John Yates, Libby Sousa, Arman Oruc, Paul Jin, Matt Wetzel, and Julie Tibbets.
For more information on the deal, please read the press release.