Under the deal, GLG will develop rapid diagnostic tests that use fluid and tissue collected by Skyline’s Streamway system during procedures.

As per terms of the agreement, Skyline will issue common stock to GLG in four separate tranches, with each tranche released after the achievement of certain development milestones. 

Additionally, Skyline will pay a royalty to GLG on the sale of individual tests.

Initially, the tests will be developed for cancer biomarkers and infectious diseases.

The oncology test panels will include GLG’s patented inhibitors of signal transducers and activators of transcription 3 (STAT3). These are currently in preclinical development for a new generation of targeted therapies.

Skyline will be exclusive reseller of the Streamway direct-to-drain fluid disposal system, which was developed for medical applications such as radiology, endoscopy, urology and cystoscopy procedures.

The system will connect directly to a facility's plumbing system to automate the collection, measurement and disposal of waste fluids.

Skyline Medical interim CEO Dr Carl Schwartz said: “This partnership provides Skyline Medical with access to exciting new technology that we believe will allow future enhancements in the collection of cells and fluid waste and how it is utilized prior to disposal.”

GLG Pharma co-founder and COO Richard Gabriel said: “We are very excited about the potential of this partnership to fulfill the unmet rapid diagnostic need of oncologists and patients.”