Corgenix inks cancer deal with Lilly

Diagnostics outfit Corgenix has paired up with Eli Lilly ($LLY) to develop tests for the drugmaker's oncology pipeline, a step forward in the company's efforts to expand its contract services business.

Neither side disclosed financial terms of the deal, but the agreement tasks Corgenix with stepping in and co-developing some of Lilly's proprietary diagnostics designed to work in tandem with an investigational cancer drug.

Corgenix has long sold diagnostic tests on its own, but the company has since reached into contract services developing and manufacturing products for clients out of its Denver headquarters. Teaming up with Lilly is an affirmation of Corgenix's outsourcing capabilities, CEO Douglass Simpson said.

"This relationship strengthens our company's program of strategic alliances in key areas of laboratory and research medicine," Simpson said in a statement. "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."

Lilly is no stranger to outsourcing; it has signed deals with the likes of Parexel ($PRXL) and AMRI ($AMRI), and looped in companies to develop companion tests for its pipeline, including Dako, Qiagen ($QGEN) and PrimeraDx.

- read the announcement