Australian medical device company Atomo Diagnostics Limited (ASX: AT1) has entered into an agreement with PinkTech Design Private Limited to launch its AtomoRapid COVID-19 antibody test in the Indian market.
Under the agreement, PinkTech – which trades as DIVOC Laboratories an Indian specialist diagnostic company, will distribute the AtomoRapid COVID-19 rapid test in the Indian market on a non-exclusive basis.
Atomo Diagnostics co-founder and Managing Director, John Kelly, said DIVOC sees significant potential for distribution to government, corporate, lab to lab and importantly through an established home visit network that will enable at-home testing, supported by medical professionals.
Under the agreement, Atomo will initially provide 77,000 antibody test kits (being one container), upon DIVOC obtaining product registration approval for professional use, which is anticipated to be received in Q2 FY21. The agreement will terminate in the event that DIVOC fails to order one million units over the following 12 months following receipt of regulatory approval in India.
In return, Atomo will receive a fixed transfer price per unit and will also receive a percentage of revenues received by DIVOC on final product sales above this transfer price.
Mr Kelly said Atomo considers that, if DIVOC is successful in obtaining regulatory approval in India, the potential revenue and earnings generated will be material.
DIVOC was formed earlier this year in partnership with global financial advisory firm, Lion’s Head Global Partners. DIVOC is accredited by the Indian National Accreditation Board for Testing and Calibration Laboratories (NABL), a stringent accreditation body, with less than 5% of all laboratories in India having secured this certification.
Globally, India is currently experiencing the highest rate of daily infections, with the 7-day average currently exceeding 90,000 daily cases. Since the onset of COVID-19, India has recorded c.5.5m infections.
Mr Kelly said the right to the non-exclusive sale of the AtomoRapid COVID-19 rapid test in India is a further expansion of Atomo’s agreement with NG Biotec.
We are delighted to be able to offer our antibody rapid test in another large international market,” Mr Kelly said.
“Rapid testing forms a significant pillar of India’s response to managing the COVID-19 pandemic with the numbers of daily rapid tests increasing significantly in recent months.
“Our Indian partner is a high-quality provider of diagnostic services, being one of the few laboratories in India that has been able to secure NABL accreditation. We are confident of their ability to rollout the AtomoRapid COVID-19 antibody testing across a number of high value channels in India in the coming months.”