I agree with your sentiments @ Bradbury, in relation to Proteomics (ASX:PIQ) having discontinued their agreement with Sonic Healthcare to sell in the US PIQ’s Diabetic Kidney Disease diagnosis test PromarkerD. 

This appeared to be a potentially a very successful test and a lucrative relationship with Sonic. The test could predict up to four years in advance, the likelihood of a diabetic patient developing the debilitating Diabetic Kidney Disease. What’s more there are drugs and actions available to the patient to prevent the onset of the disease, if detected early. In addition PIQ have obtained US Medicare reimbursement for the test.   A real winner you might think.

In May 2023 PIQ licenced the same test to Omic Global Solutions (OGS) for sale in Puerto Rico. Well, you have got to start somewhere. This was later extended to Chile in December 23. PIQ has not specifically reported or broken out just what the sales of the test by OGS have been to date. You could only surmise, not much.

This is unlike Botanica (BOT) where for their FDA approved drug Sofdra used for the treatment of hyperhidrosis, you can get a sense of how successful the US rollout might be. This is because they have been selling the same drug in Japan since late 2020.  BOT recently indicated 350,000 units of the drug being sold last year in Japan. Whilst the figure is somewhat opaque since you are not getting specifics on patient persistence and the like, it is at least something and helps engenders investor confidence in BOT.  You do not have to capture much of the US market for BOT to be very successful.

As another counterpoint to PIQ, the ASX listed Microbia (MAP) have a relationship with Sonic Healthcare to sell their gut health test kits in Australia, USA, UK and elsewhere. In November 2022 Sonic took at 19.9% interest in MAP. So Sonic are not adverse to partnering and taking ownership stakes in allied health testing companies they believe have promise.  

There are two other companies with roughly similar-in-intent tests that come time mind:

i)  Rhythm Biosciences (ASX:RHY) with a bowel cancer detection system using bloods samples,

ii) Pacific Edge (ASX:PEB) has a genomic test that analyses biomarker genes to help rule out bladder cancer. Testing is via a urine sample.

Both have seen their market caps decimated by over 90% from their respective highs as the initial optimism waned when the reality of commercialisation sunk in. You could probably add in BCAL Diagnostics (ASX:BDX) with their breast cancer detection via a blood test to the list, on the basis for now the market remains (overly) optimistic on their prospects. Maybe Chair and founder Jayne Shaw being a first rate networker and promoter could have something to do with this. 

Commercialisation of these type of tests has proved very difficult and what Australian investors are typically seeing is only the ASX listed companies of this type. There is a whole world of biotech companies working in this field, a very competitive area.    

PIQ in its ASX release of the 11/09/24 indicating they no longer will have any commercial relationship with Sonic and said: “Proteomics International is now free to launch PromarkerD in the US via licensing to alternative pathology laboratories and service providers and/or direct to consumer/ patient (DTC/DTP)”.   Right, let’s cease dating Taylor Swift and go check out the old people’s home. 

Whilst PIQ’s PromarkerD test is promising and the upcoming test for endometriosis looks very positive, however given their recent record it is difficult to get any sort of a woody over PIQ. (Apologies for the usage of highly technical finance terminology).