SciBase and Castle Biosciences Join Forces for Dermatology Tests

SciBase Partners with Castle Biosciences

SciBase Holding AB (STO: SCIB), a pioneer in AI-driven diagnostic solutions for skin disorders, has recently established a collaboration with Castle Biosciences (NASDAQ: CSTL), a prominent name in molecular diagnostics. This partnership aims to create innovative diagnostic tests in dermatology, aiming to enhance treatment techniques specifically for conditions like atopic dermatitis (AD).

Goals of Collaboration

The primary objective of this collaboration is to develop a predictive test for flare-ups in patients with atopic dermatitis. This innovative approach will leverage SciBase's advanced electrical impedance spectroscopy (EIS) technology, prominently featuring their flagship product, Nevisense. This collaboration signifies a promising shift in how dermatologists manage patient care for skin disorders.

Financial Details

To support this collaboration, SciBase is planning a directed share issue estimated at approximately SEK 30 million. Notably, Castle Biosciences is committed to acquiring shares valued around SEK 19 million, reflecting their confidence in this venture. The share price is set at SEK 0.40 per share, indicating a strong financial alignment between the two organizations.

Shared Objectives and Territories

Under the terms of the agreement, both companies will jointly investigate various clinical indications related to dermatologic diseases. While SciBase will focus on markets in the European Union and several key Asian markets, including Japan and South Korea, Castle Biosciences will initially concentrate on North America. The collaboration anticipates a reasonable revenue-sharing strategy, where SciBase could earn royalties from sales generated by Castle Biosciences.

Milestone Payments and Development Costs

In addition to royalties on sales, SciBase is set to receive significant milestone payments upon surpassing sales thresholds, with an initial payment of USD 5 million when Castle's annual sales reach USD 50 million. Interestingly, SciBase will postpone its clinical development expenses related to the initial testing phase while offsetting these costs through future revenue from the agreed-upon royalty and milestone structures.

Statements from Leadership

Pia Renaudin, CEO of SciBase, expressed enthusiasm about the collaboration, stating, "This partnership with Castle Biosciences will fast-track the adoption of Nevisense within the dermatological community. We are eager to expand our clinical studies pipeline, enabling quicker access to advanced therapies for patients experiencing skin barrier issues." This sentiment is echoed by Castle Biosciences CEO, Derek Maetzold, who added, “We are thrilled to deepen our involvement in the dermatology sector. This opportunity aligns perfectly with our mission to enhance the lives of those dealing with skin-related challenges.”

The Importance of Addressing Skin Barrier Dysfunction

Skin barrier dysfunction remains a significant underlying cause of various skin conditions, including atopic dermatitis, psoriasis, and rosacea. With estimates suggesting that over 500 million individuals worldwide suffer from skin disorders related to impaired barrier function, addressing these challenges effectively is crucial. Conditions like atopic dermatitis alone affect approximately 223 million people globally, underscoring a pressing need for innovative diagnostic and therapeutic solutions.

Impact and Future Directions

The collaboration between SciBase and Castle Biosciences is poised to not only enhance clinical management strategies for atopic dermatitis but also broaden the scope of dermatological research and patient care. By developing a test that predicts flare-ups in AD patients, both companies share a vision of transforming how skin disorders are treated, ultimately leading to improved patient outcomes and quality of life.

Frequently Asked Questions

1. What is the primary focus of the collaboration between SciBase and Castle Biosciences?

The collaboration focuses on developing a diagnostic test for predicting flare-ups in patients diagnosed with atopic dermatitis.

2. What financial commitment is Castle Biosciences making?

Castle Biosciences will subscribe to shares worth approximately SEK 19 million as part of the directed share issue.

3. What territories will SciBase and Castle Biosciences focus on initially?

SciBase will concentrate on the EU and specific Asian markets, while Castle Biosciences will focus on North America.

4. How will revenue be shared between the two companies?

SciBase will earn royalties from Castle's sales, along with milestone payments upon achieving specific sales thresholds.

5. Why is addressing skin barrier dysfunction important?

Skin barrier dysfunction contributes significantly to various skin disorders, affecting over 500 million individuals worldwide, highlighting the need for effective diagnostic solutions.

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