Epredia, NovaScan Devise U.S. Distribution Agreement for MarginScan Device

Epredia and NovaScan Inc. have signed a letter of intent establishing a U.S. exclusive commercial distribution agreement for MarginScan, a medical device that detects non-melanoma skin cancer in real time. Epredia has tapped Avantik, a company specializing in supporting diagnostic labs with their operations, to distribute the device.

“NovaScan is thrilled to be partnering with Epredia to bring MarginScan to clinical healthcare providers in the U.S.,” NovaScan CEO Craig Davis said. “We are proud for MarginScan to join Epredia’s portfolio of cancer diagnostics products. We believe that MarginScan will play an important role in skin cancer detection and treatment.”
 
Skin cancer is the most common group of cancers diagnosed worldwide,¹ and it is estimated that one in five Americans will develop skin cancer in their lifetime.² Non-melanoma skin cancers (NMSC) are the most common cancers in the United States, affecting more than 3 million Americans annually.³ More than 20% of Americans are expected to develop NMSC before reaching age 70. Most surgeries for NMSC are simple excisions, which may result in removal of substantial healthy tissue around the suspected cancer.
 
MarginScan is designed to address this challenge by supporting Mohs surgery procedures for skin cancer treatment. Mohs Micrographic Surgery (MMS) is an operative method used to detect the presence or absence of a tumor in the margins of a surgical excision. In an MMS procedure, cancer tissue is excised in stages, then flash-frozen and assessed histologically in an onsite lab until clean margins are obtained. Previously, MMS was the only modality for skin cancer treatment that involved comprehensive margin assessment during a procedure. MarginScan is designed to use an electrical assessment to confirm cancer-free margins without the intraoperative histological assessment. This has the potential to allow for faster excisions that spare more healthy tissue, leading to improved outcomes for both patients and clinicians.
 
With this planned agreement, Epredia will serve as the primary distribution partner of MarginScan and will have exclusive U.S. distribution rights. Along with distribution, Epredia will be responsible for all marketing and commercial activities related to MarginScan’s launch and sale. Epredia will work closely with Avantik to market and sell the new device to Mohs surgeons.

“With more than 85 years supporting precision cancer diagnostics, we strive to continuously serve the changing needs of our customers by working with innovative companies like NovaScan to deliver the best solutions,” Epredia President Steven Lynum stated. “Helping providers make faster, more accurate diagnoses and ultimately improving patient care is what makes this initiative so important.”
 
MarginScan is the latest addition to Epredia’s portfolio of precision cancer diagnostics products and services that provide a seamless end-to-end laboratory workflow, including slide scanners and printers, cryostats, tissue processors, and consumables such as slides and reagents. In addition to offering MarginScan, Epredia will also provide consumable products that are used with the device, such as the MarginScan electrode and proprietary electrolytic gel used during excisions.
 
The companies expect to launch MarginScan in the United States next year. This distribution agreement builds on a previous partnership between NovaScan and PHC Corporation, another subsidiary of PHC Holdings Corporation that is focused on the development and manufacturing of medical testing devices.
 
“Our team is continually sourcing the best solutions to expand our portfolio of solutions supporting Mohs clinics with their critical work,” Avantik CEO Mark Zacur commented. “We are honored that Epredia selected Avantik as their partner to bring this breakthrough device to our network of providers and their patients.”
 
Epredia provides solutions for precision cancer diagnostics and tissue diagnostics. Powered by key brands, including Erie Scientific, Menzel-Gläser, Microm, Shandon, and Richard-Allan Scientific, Epredia’s portfolio includes microscope slides, instruments and consumables. Epredia was established following the acquisition of Thermo Fisher Scientific’s Anatomical Pathology business by PHC Holdings in 2019. Epredia has operations in major sites in the United States, the United Kingdom, Germany, Switzerland, and China with about 1,200 employees. 

PHC Holdings Corporation is a global healthcare company with numerous subsidiaries (referred to collectively as PHC Group), including PHC Corporation, Epredia, Ascensia Diabetes Care, LSI Medience Corporation, Mediford, and Wemex. Together, these companies develop, manufacture, sell and service solutions across diabetes management, healthcare solutions, life sciences and diagnostics. PHC Group’s consolidated net sales in fiscal 2022 were 356.4 billion yen with global distribution of products and services in more than 125 countries and regions. 

Based in Chicago, NovaScan is a clinical stage oncology diagnostic and stratification company that has developed a low cost, point of care platform for real-time cancer detection and stratification. NovaScan’s platform is active in skin, GI, lung, and breast.
 
Founded in 1971, Avantik specializes in supporting diagnostic laboratories with maintaining their operations. The company offers a national network of more than 250 engineers, technicians and service personnel that assist diagnostic labs with increasing their productivity, enhancing their products, and streamlining their processes. It also manages an inventory of lab equipment and consumables that it continually expands to provide labs with new products that advance their goals for fast and accurate diagnoses. In 2023, Avantik partnered with Water Street Healthcare Partners, an investment firm dedicated to building market leaders in health care, to advance its goals for expansion and building on its legacy as a trusted partner to diagnostic laboratories. 

References
¹ Source: World Health Organization.
² Source: World Health Organization.
³ Source: American Academy of Dermatology.