Eli Lilly, Corgenix ink cancer drug companion Dx deal

Eli Lilly ($LLY) will work with Corgenix Medical to develop companion diagnostics for its cancer drug pipeline.

Neither side is disclosing financial terms. But Corgenix, which is based in Denver, CO, said its role will be to advance diagnostic tech that Lilly first developed. And Corgenix President and CEO Douglass Simpson said in a statement that the agreement follows a broader strategy of growth through strategic alliances focused on laboratory and research medicine.

"The Lilly collaboration in particular opens a new door for Corgenix as we continue to explore this technology in global clinical research as potential new technology to meet the needs of oncology clinicians worldwide," Simpson said.

For Corgenix, the deal reflects an expansion of its contract services business. For Lilly, the deal reflects a wide net cast in its bid to develop companion diagnostics for its drug pipeline. In February, for example, the company expanded a partnership with Qiagen ($QGEN) to collaborate on companion diagnostics development across all of its therapeutic areas, well beyond an initial focus on cancer. Lilly has also inked similar deals with Agilent's Dako diagnostic unit and PrimeraDx.

Lilly is playing it smart, distributing its companion diagnostic development among partnerships with both larger diagnostics outfits and small up-and-comers. The approach distributes risk but also taps a wide range of brainpower for maximum gain.

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