Dr. Wayne Maddever reports

CHROMEDX ACQUIRES AUTOMATED ULTRAFILTRATION IMMUNOASSAY TECHNOLOGY

ChroMedX Corp. has acquired automated ultrafiltration technology (AUF) and associated intellectual property.

"After thorough investigation of the technology, potential market and development requirements, we are very enthused to add the AUF technology to our portfolio. We found the AUF intellectual property to be of significant merit and the nature of the technology will allow us to develop and commercialize the disruptive technology in a timely manner," said Dr. Wayne Maddever, president and chief executive officer.

ChroMedX has exercised the option to acquire patent application PCT/CA2013/050935 related to automated ultrafiltration technology and associated intellectual property from InvidX Corp., pursuant to an option agreement dated June 16, 2014, whereby InvidX agreed to assign the AUF to ChroMedX for a purchase price of $1.5-million. As consideration for the acquisition of the AUF the company will issue 5,474,452 common shares which was determined based on the 20-per-cent discount to the 10-day volume-weighted average price of the company's shares immediately preceding the date of exercise of the option as per the terms of the option agreement. The company expects to complete the transaction next week following receipt of all patent documents from InvidX.

About the technology

The automated ultrafiltration technology is a potentially disruptive technology which will allow the preparation of samples for immunoassay of free therapeutic drugs (such as Dilantin, an anti-convulsant) and hormones (such as testosterone) to be done more efficiently as part of a rapid automated system, replacing the current manual dialysis/centrifugation preparation step.

The major portion of some of these drugs/hormones tend to bind to proteins in the blood system thereby rendering them inactive. Only the unbound or free chemical species are biologically active. In order to measure the free drug/hormone, a manual preparation step of separating the protein-free fraction from the sample must be performed. The current separation process incorporates dialysis that takes about 18 hours or alternatively, 30 minutes of centrifugation in a special device.

The immunoassay market comprises approximately one-fourth of the IVD market and is projected to reach $13.0-billion in 2013 (Markets and Markets Report: Immunoassay Market -- Global Forecast to 2018 (2014)). Therapeutic drug monitoring alone was estimated to reach $335-million in 2014 (Kalorama Report: Worldwide Market for In Vitro Diagnostics (2010)) while endocrine (hormone) testing was valued at $1,537-million in 2012 with a forecast 4.3-per-cent CAGR (Transparency Market Research Report: Endocrine Testing Market -- Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 and 2019 (2014)). Preliminary market study has shown that there are approximately 100,000 independent and hospital laboratories in the United States, not including physicians and offices, many of which could benefit from the AUF technology by reducing costs and time required for sample processing.

We seek Safe Harbor.