QuantRX Biomedical Corp. today announced that it has entered into an agreement to acquire NuRx Pharmaceuticals Inc. (OTCBB: NUXP). The transaction is structured as a tax-free, all stock acquisition resulting in a combined company with no debt and a simplified ownership and capital structure.
The agreement for QuantRx to acquire NuRx follows a joint venture between the companies announced in July 2009. The QN Diagnostics joint venture between the two firms leverages 30 years of diagnostic healthcare research and development expertise. The joint venture has been focused on accelerating the commercialization of diagnostic products utilizing QuantRx’s RapidSense rapid diagnostics technology.
Among the initial products projected to be launched in 2010 is a new line of hypersensitive clinical laboratory improvement amendments (CLIA) waived quantitative point-of-care lateral flow diagnostic devices. These devices have reliable and repeatable sensitivity in the low picograms per milliliter needed to provide laboratory level results to the point-of-care market. This unique platform technology enables the use of any biological sample such as blood, urine or saliva to deliver laboratory results to the primary care provider in minutes.
Through this joint venture, both companies gained a greater appreciation of the point-of-care market and realized that a merger made sense. Both companies believe the merger will not only leave them stronger financially, but will enable them to more aggressively expand their efforts to capitalize on opportunities for their patented diagnostic products in the rapidly growing market for point-of-care diagnostic products.