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- Genetic Technologies (GTG) has officially launched its COVID-19 Serious Disease Risk Test through its U.S.-based distribution partner, Infinity BiologiX (IBX)
- The two companies signed a three-year licensing deal for the tech in March, with the product now having received all necessary regulatory approvals
- Genetic said its product officially launched in the States on May 28, though IBX has not provided an initial volume guidance for the product
- Each risk test retails for US$175 (around A$226), of which Genetic Technologies will pocket a US$10 (around A$13) royalty
- On top of this, IBX will need to make quarterly payments totalling just under US$3 million to maintain exclusivity under the three-year with GTG
- The risk test is designed to assess how likely it is for a person to develop severe symptoms that require hospitalisation should they contract COVID-19
- Shares in GTG have fallen 10 per cent this morning to trade at 0.9 cents
Genetic Technologies (GTG) has officially launched its COVID-19 Serious Disease Risk Test through its U.S.-based distribution partner, Infinity BiologiX (IBX).
The two companies struck a three-year licensing deal over the tech back in March this year, with the risk assessment device now having received all necessary regulatory approvals.
As such, Genetic told shareholders this morning its product was officially launched in the States on May 28.
IBX and its telehealth partner will produce, distribute and sell the COVID-19 risk test across its network, with the device to be released under GTG’s “powered by GeneType” brand.
Through IBX’s labs in New Jersey and Minnesota, GTG claims IBX has the capacity to process over 100,000 tests per day. However, IBX has not provided any initial volume guidance following the launch of the risk test.
Each test retails at US$175 (around A$226), of which Genetic Technologies will pocket a US$10 (around A$13) royalty.
Importantly, under the terms of the exclusive co-licensing deal, IBX must make quarterly payments to GTG to maintain exclusivity over the tech for the full three years of the contract.
Payments over the first year must total US$850,000 (around A$1.1 million), and payments over the second and third years must equal US$1 million (around A$1.3 million) each. This is on top of Genetic’s US$10 royalty.
What does the risk test do?
GTG’s COVID-19 Severity Risk Test is not designed to detect the presence of COVID-19 in the body, but rather to assess how likely it is for a person to develop severe symptoms that require hospitalisation should they contract the virus.
The test needs nothing more than a saliva sample to identify key genetic risk markers associated with severe COVID-19 infection.
A person can order the test kit online, provide the saliva sample from their own home, and then ship that kit back to receive a personalised report of their risk of developing severe COVID-19 symptoms.
According to IBX and Genetic Technologies, the test can protect people from the virus by identifying who is most vulnerable to its effects.
Nevertheless, shares in GTG have fallen 10 per cent this morning to trade at 0.9 cents as of 11:38 am AEST. The company has an $90.16 million market cap.
