The Atomo Diagnostics Ltd (ASX: AT1) share price is charging higher this morning after expanding its COVID-19 testing partnership with a French biotech company.
Atomo Diagnostics is a medical device company that supplies rapid diagnostic test (RDT) devices to the global diagnostic market. Its RDT platforms simplify testing procedures and enhance usability for both professional users and untrained self-testers. The company has supply agreements in place for tests targeting infectious diseases such as HIV and COVID-19.
Atomo Diagnostics shares are fresh on the ASX scene after listing on 16 April 2020 at an issue price of 20 cents per share. At the time of writing, Atomo Diagnostics shares are changing hands at 34.5 cents per share – 9.52% higher for the day and 72.5% higher than the IPO price. The company's market capitalisation is currently sitting just below $200 million.
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What did Atomo Diagnostics announce?
After the market closed yesterday, Atomo revealed it has expanded its COVID-19 rapid test partnership with NG Biotech.
Under the existing agreement, Atomo has been supplying NG Biotech with its Galileo rapid test device for use in NG Biotech's COVID-19 antibody tests. The initial order under the agreement was for 397,200 devices, with NG Biotech having the right to purchase up to 2.465 million devices.
To date, NG Biotech has ordered more than 1.5 million Galileo devices for testing in France. NG Biotech's test has been CE Marked for professional use in Europe and results are obtained from a drop of blood in 15 minutes.
Under the expansion of the partnership, Atomo now has exclusive rights to market and distribute the COVID-19 antibody test in Australia, New Zealand, and a number of countries in South East Asia – subject to obtaining regulatory approvals in each jurisdiction. The test will be marketed and distributed under the brand 'AtomoRapid COVID-19 (IgG/IgM)' and Atomo will be the listed manufacturer.
The pricing arrangements with NG Biotech are limited to a price payable per unit only and do not include any license fees or royalties.
Atomo noted that the period of exclusivity is not currently limited and it is in the process of negotiating a definitive long-term supply agreement with NG Biotech.
What now?
Atomo will now progress regulatory applications within the relevant jurisdictions in the coming months. Based on an assessment of regulatory pathways, the company's initial focus will be Australia, the Philippines, Hong Kong and Taiwan.
Commenting on the partnership expansion, Atomo's co-founder and managing director John Kelly said:
"Atomo is delighted to have secured exclusive rights to market, as the listed manufacturer, the COVID19 test which NG Biotech has successfully launched in Europe with initial sales to the French Ministry of the Armies (Defence) and a number of public hospitals, following strong results in independent French clinical studies."
