Biocept ($BIOC) now has what every life sciences company pursuing expansion in China needs: local patent approval.
The San Diego, CA, cancer-focused molecular diagnostics company said it now has a patent in China for its microfluidic channel technology, which is key to capturing circulating tumor cells for diagnosis.
"The granting of this patent expands Biocept's international IP (intellectual property) portfolio and positions the company well in the Chinese market to be a potential leader in providing innovative technologies for capturing and analyzing circulating tumor cells," Biocept Chief Scientific Officer Lyle Arnold said in a statement.
Biocept itself said that the China patent puts another piece in place as far as its broader East Asia expansion plans. The goal: to boost the global use of blood-based liquid biopsies to test for cancer-related biomarkers. These tests, in turn, can theoretically help guide more personalized treatment decisions for patients and the physicians treating them.
Biocept is gunning for a big piece of this market. The company has its OncoCEE-BR test for breast cancer, which uses technology that captures and analyzes circulating tumor cells and circulating tumor DNA from a blood sample in order to evaluate a patient's cancer, treatment options and prognosis. In its China announcement, Biocept noted that it is developing similar tests for lung, colorectal and prostate cancers, plus other solid tumors.
Investors reacted tepidly to the news. Biocept traded at $3.65 as of late morning on Sept. 18 (the day the China patent was first announced), down more than 6%.
Biocept launched a small IPO earlier in 2014, raising $19 million to help fuel commercialization of its OncoCEE-BR breast cancer test. Since then, Biocept's story has been about growing pains. Biocept released 2014 second-quarter earnings in August that revealed nearly $3 million in net losses (an increase of about one-third over the same period in 2013) and a dip in net revenue. The results stem in large part from executives' investment in building a commercial infrastructure for the company, and hiring staff and building business relationships takes both time and money.
Plans are in place to develop managed care and reimbursement strategies, which are key in an era where diagnostics companies struggle to win insurance coverage for new tests.
The China patent in place will help Biocept with international expansion and boost its chance of generating new revenue. China and other markets in Asia, such as India, are spending billions to modernize their healthcare systems, and diagnostic testing can and will be a key part of this. Biocept also has other strategies in place, such as plans to partner with biopharma companies and academic institutions on companion diagnostics. There are also other initiatives, such as automation of its CLIA-certified lab to help manage costs and improve margins.
- read the release