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Leveraging Diagnostics in a Biotech World

Corixa's recent deal with Ortho-Clinical Diagnostics brings Ortho exclusive worldwide diagnostics rights to Corixa's breast cancer genes and antigens and helps Ortho gain a foothold in the emerging area of molecular testing. It also illustrates how biotech companies caught up in long-term programs for therapeutics can capture some near-term value. While Corixa's lead drug is delayed at the FDA, the deal gives the company a source of revenues that may be small but is at least real.

Corixa Corp. 's recent deal with Johnson & Johnson subsidiary Ortho-Clinical Diagnostics Inc. brings Ortho exclusive worldwide diagnostics rights to Corixa's breast cancer genes and antigens. It also illustrates how biotech companies caught up in long-term programs for therapeutics can capture some near-term value. While Corixa's lead drug, tositumomab/iodine I-131 tositumomab (Bexxar) is delayed at the FDA, the deal gives the company a source of revenues that may be small but is at least real.

The deal revolves around a series of breast cancer genes, which Corixa has identified and characterized. Ortho's Advanced Diagnostic and...

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