What are often the magic ingredients that can propel promising early-stage life sciences firms into world class and sustainably profitable entities? To me the answer is focus, desire and hunger for success, which global immunodiagnostics group Oncimmune (ONC) seems to have in spades.

It announced today that it had disposed of its IP-rich but sub-scale EarlyCDT division - including associated R&D activities - to US private biotech organisation Freenome for £13m in cash, of which 10% or £1.3m would be held in escrow for 12 months.

Freenome plans to combine EarlyCDT's leading lung cancer test with its own cutting edge oncology related diagnostics. Similarly EarlyCDT's pipeline of autoantibody targets will augment Freenome's multiomics platform with additional non-tumor-derived signals.

So where are the proceeds being deployed?

Well €7.2m (£6.25m) will be used to reduce the existing IPF debt facility, with the remaining €6.0m balance being refinanced over a 3-year period at an interest rate of 9% pa over 3-month EURIBOR (presently 3.4%). This should leave approx. £6.7m of cash available (incl the £1.3m in escrow) to provide ample working capital to fund future rapid expansion. 

That will enable Oncimmune to not only scale its proprietary and highly differentiated ImmunoINSIGHTS operation, which generates 80%+ gross margins, which in turn will support many of the world’s biggest biopharma groups to target, discover and clinically test new oncology, autoimmune and infectious disease drugs.

Elsewhere, Freenome have also signed a new Master Services Agreement with a guaranteed commitment to purchase at least €1.14m pa of services from ImmunoINSIGHTS, covering the next two years with an option to extend for a further three. 

CEO Adam Hill commented: "We are delighted to pass the EarlyCDT technology and pipeline of autoantibody targets for other cancer indications to Freenome, to advance their multi-cancer early detection screening interests. Having now completed the Sale, the Group will focus on driving profitable growth in our #ImmunoINSIGHTS pharma services business. Signing the MSA also adds Freenome as a new major client, alongside 7 of the top 15 global pharma companies who use the platform."

Oncimmune's shares have jumped almost 10% this morning on the back of this extremely positive news.