Corgenix signs deal to develop diagnostic product for Eli Lilly

BROOMFIELD — Corgenix Medical Corp. (OTC BB: CONX.OB) in Broomfield, a maker of diagnostic kits for the medical industry, has entered an agreement to develop diagnostic kits for Indiana-based Eli Lilly and Co. (NYSE: LLY), according to documents filed Aug. 19 with the Securities and Exchange Commission.

Financial terms of the agreement, signed Aug. 15, were not disclosed.

The agreement covers technology transfer, licensing and product development on diagnostic kits for Eli Lilly. What the kits would be used for was not disclosed.

The two companies first will work together to study the feasibility of developing and manufacturing certain diagnostic test kits for the measurement of certain materials, according to documents filed with the SEC.

Both companies granted rights to use each other’s technologies.  Eli Lilly will cover Corgenix’s costs for raw materials and labor to perform the feasibility study.

If considered feasible, Corgenix will develop the test kit for Eli Lilly at either Corgenix’s facilities or third-party sites designated by Corgenix and approved by Lilly, according to SEC documents.

Corgenix’s chief executive Douglass Simpson wrote in an email Friday afternoon that the company will be adding additional scientists to strengthen its development team for the Lilly project. He added that the company is hopeful that such collaborations for companion diagnostic projects bring long-term revenue opportunities to the company.

Corgenix has developed diagnostic kits for immunology disorders, vascular diseases, and bone and joint disorders, including one for Ebola and one for a non-blood-based test for determining the effectiveness of aspirin. It sells about 50 different diagnostic kits worldwide to hospitals, clinical laboratories, commercial reference laboratories and research institutions.

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