PDI, Inc. (PDII)

[surf1944]

7:31AM PDI Inc enters into collaboration agreement to commercialize molecular diagnostic tests (PDII) 4.62 : Co announced the signing of a collaboration agreement with a privately held molecular diagnostics co to commercialize the co's molecular diagnostic tests. The initial test to be commercialized is fully developed. Under the terms of the collaboration agreement, PDI has paid the co an initial fee of $1.5 mln and has received an option to purchase the co. The option price is dependent on the achievement of certain milestones during the collaboration period and could be up to $6 mln if all milestones are achieved at their maximum levels. PDI can terminate the collaboration agreement if all milestones are not achieved within one year and would receive a $1 mln termination fee from the co. If all milestones are achieved within one year and PDI has not exercised its option, the co can require PDI to exercise the option to purchase the co or terminate the collaboration agreement and pay PDI a termination fee of approximately $2 mln. If PDI purchases the co, in addition to the option price based on the achievement of milestones, beginning in 2015, PDI would pay a royalty of 7% on annual net revenue up to $50 mln with escalating royalty percentages for higher annual net revenue capped at 11% for annual net revenue in excess of $100 mln.