diaDexus, Inc. has entered into a license agreement with OriGene Technologies, Inc. and Wuxi OriGene Biotechnology Co. Ltd. to develop and commercialize LP-PLA2 mass assay products. Under the terms of the agreement, diaDexus grants the licensee exclusive rights to develop and commercialize LP-PLA2 mass assay products in certain Asian countries with a license term of ten years, and supply commitments dependent on certain conditions.

Diadexus will be responsible for supplying to the licensee certain raw materials and reagents needed for licensee to develop, produce and sell PLAC (R) ELISA in the territory. The licensee will seek marketing authorization for the test in the territory. The licensee has agreed to purchase the LP-PLA2 mass assay products exclusively from Diadexus at a mark-up above Diadexus' manufacturing cost.

The licensee has also committed to a minimum first bulk supply purchase totaling $0.05 million. The PLAC (R) ELISA test kit measures the concentration of circulating lipoprotein-associated phospholipase A2 (Lp-PLA2) in the blood using an enzyme-linked-immunosorbent serologic assay (ELISA). After commencement of commercial sales, Diadexus will be eligible to receive modest sales-based milestones as well as mid-single-digit royalties on net sales.

In addition to the PLAC (R) ELISA rights, Diadexus has also granted to the licensee a right of first offer for future rights to PLAC (R) activity in the territory.