- Atomo Diagnostics (AT1) has entered a partnership with U.S. company Access Bio for the commercialisation of rapid COVID-19 antibody tests
- The companies will market two separate tests; one for professional healthcare use and another for home self-testing
- The deal will see Atomo’s integrated rapid diagnostic test (RDT) combined with Access Bio’s rapid test strip for detecting COVID-19 antibodies
- Given the huge market need for rapid COVID-19 diagnostics, Atomo is scaling up its production capacity to meet the new demand
- Atomo believes the deal has the potential to deliver significant revenue and earnings in the future
- Nearing Tuesday’s close, Atomo Diagnostics is trading 6.8 per cent higher at 39.5 cents
Atomo Diagnostics (AT1) has entered a partnership with U.S. company Access Bio for the commercialisation of rapid diagnostic tests for COVID-19 antibodies.
The companies will market two separate tests; one for professional healthcare use and another for home self-testing.
The deal
Under the terms of the agreement, the companies will work together to marry Atomo’s integrated rapid diagnostic test (RDT) devices with Access Bio’s rapid test strip for detection of antibodies to COVID-19.
The agreement grants Access Bio exclusive rights for the use of Atomo’s RDT in the U.S., Canada and Mexico, and non-exclusive rights for the rest of the world excluding Europe, Australia, New Zealand and south-east Asia.
Given the huge market need for rapid COVID-19 diagnostics, Atomo is currently undertaking a scale up of its production capacity to meet the new demand.
Pending regulatory approvals for the new device, Access Bio is obliged to sell a minimum of two million units by 30 September 2021. If that mark isn’t met, Access Bio will have to buy out the shortfall, and the exclusive rights for the U.S., Canada and Mexico will automatically become non-exclusive.
If the target is met, the agreement will automatically renew for subsequent 12 month periods.
Atomo will receive a percentage of the gross revenues from the sale of the products.
Next steps
Separate approvals for the professional and home-use devices will be required across the three territories, and sales will roll out in phases as approvals are granted.
The companies anticipate the professional devices will be submitted for approval by the end of the year, while the home use devices will come at a later date.
Atomo co-founder and CEO, John Kelly, says the new partnership is an exciting development for the company.
“Access Bio is a leading manufacturer in rapid diagnostics, with strong ties to U.S. markets and a long-standing trusted partner of Atomo,” John said.
“Our companies believe that blood-based rapid diagnostic testing is an essential component of the global fight against COVID-19.”
Atomo co-founder and CEO, John Kelly
“Given the increasing urgency of the situation in the U.S., we are delighted to be
able to play our part in attempting to defeat this pandemic,” he added.
Atomo believes the deal has the potential to deliver significant revenue and earnings in the future.
Once the new RDT gets the regulatory seal of approval in the relevant territories, it could become a lucrative — and life–saving — product for the partnership.
Nearing Tuesday’s close, Atomo Diagnostics is trading 6.8 per cent higher at 39.5 cents.