Two CK firms invest in liquid biopsy player

Aiden He

CK Life Sciences (0775) and CK Hutchison (0001) will invest in Pharus, a company focused on the development and commercialization of liquid biopsy tests for early cancer detection - a global market that is believed to grow to US$26 billion (HK$204.1 billion) in 2030.

The two firms will each hold approximately an 18.33 percent stake of Pharus through subsidiaries, according to a filing yesterday.

Pharus' parent Quark has transferred or licensed certain assets to Pharus - including patent rights, know-how and physical assets for use in the business to be conducted by Pharus - and the total consideration was determined after taking into account the value of these assets and with reference to the estimated post-money valuation of Pharus being valued at approximately US$30 million, it said.

The global liquid biopsy market was valued at approximately US$8 billion in 2021 and is projected to grow to US$26 billion in 2030, CK Life Sciences said in a separate statement.

Of this, close to 40 percent is estimated to be from the sales of test kits and consumables as well as provision of testing services.

Pharus is prioritizing its efforts on the development of OncoSweep - a cancer liquid biopsy test for the early detection of multi-cancers based on finding microRNA circulating in blood - as well as single-cancer liquid biopsy tests for the detection of cancers with high incidence in Asia, the statement said.

CK Life Sciences stated in the filing that it is engaged in nutraceuticals, pharmaceuticals as well as agriculture-related businesses, and the investment would offer synergies with its existing operations in pharmaceuticals research and development as well as the potential for an attractive return and capital appreciation.

After taking into account factors such as market outlook and future earnings potential, it believes the terms of the deal are fair and reasonable and are in the interests of the company and its shareholders as a whole, the filing said.