As scientists' knowledge of genetics improves so does their ability to diagnose specific types of illness. One of the world leaders in this type of technology is Ventana, a subsidiary of Swiss giant Roche, which generates $1bn in revenue per year from the sale of equipment to diagnose cancer.
Now, to ensure that equipment is as accurate and effective as possible, the company has employed the services of Horizon Discovery (HZD) to provide cell lines (simply described as alternative patients) to be used to develop new best-in-class technology to diagnose cancer. Under the terms of the agreement Horizon will be paid “fairly meaty” sums of money for both the development and provision of these cell lines. Then, following any successful launch of new equipment, Horizon could receive recurring revenue from customers who will need to repeatedly check and calibrate their kits.
