Artificial intelligence company Opyl Ltd (ASX:OPL) is set to form a joint venture with Xco consortium in the United States and United Kingdom to facilitate the marketing, distribution and sale of its products and the services of its product TrialKey, across Europe, the Middle East, Africa and North America.
The company – which specialises in utilising AI technologies to elevate clinical trial design and forecast outcomes – has entered into a memorandum of understanding (MOU) with Xco consortium for the formation of the JV in which Opyl will hold a 20% stake.
The MOU agreement will be followed by three months of due diligence during which the exact terms and conditions of the JV will be consolidated. Once this is completed, Opyl will receive US$1 million in cash for license rights and R&D.
A key priority for the new entity will be capital raising, with the goal of US$3 million-US$5 million to be raised within nine months of the JV’s establishment.
In-line with the structure of the new entity, Opyl – holding a 20% stake – will appoint one director, while its UK partner will appoint 4 directors, based on its 80% investment.
In terms of revenue takings, 80% of the initial US$1.25 million will go towards the JV entity, with 20% going to Opyl directly, and all revenues exceeding this are to be divided with
60% going to the JV entity and 40% to Opyl.
One million US dollars is the revenue target for the first year – set by the JV entity – with this to double the following year and rise to US$4 million in the third.
Opyl’s TrialKey platform – a key focus of the JV -provides analysis of free-text entries made by medical practitioners during clinical trials, in particular involving the extraction of information such as dosages, administration methods, mechanisms of action, and inclusion or exclusion criteria.
Executive Chairman of Opyl Saurabh Jain said the JV was an important step in bringing the company’s technology to the world.
“This joint venture marks a significant milestone for Opyl as we expand our global footprint,” he said.
“Partnering with a knowledgeable and capable entity like Xco consortium validates our technology and opens new avenues for growth and revenue generation.
“We are excited about the potential this collaboration brings to our shareholders and the broader market.”
Opyl has been trading at 2.7 cents.