Cellmid announces supply agreement for COVID-19 rapid diagnostic test

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Australian company Cellmid (ASX:CDY) has announced a supply agreement for a COVID-19 rapid diagnostic test with an authorised distributor of the manufacturer, Guangzhou Wondfo Biotech, supplying Australia.

The company said it will pay a fixed price for each test it will purchase. Cellmid said it has placed its first order and Australia Applications, the authorised distributor and the counterparty to the agreement, has issued its first invoice. The term of the agreement is on year.

The COVID-19 rapid diagnostic test was approved as a POCT (point of care test) by the TGA on 25 March 2020, in China on 24 February 2020 and the test received CE mark on 5 March 2020.

Cellmid said it is already used in several countries including the UK, Belgium, Spain and Germany, adding it is produced in a TGA approved facility in China and it is available immediately.

"Wondfo’s COVID-19 rapid diagnostic test may be used as a bedside POCT, in doctors’ surgeries, pathology labs or in remote sites administered by healthcare professionals," said the company in a statement.

Cellmid said it may enter into trade finance, vendor finance or prepayment arrangement with customers should they be required to fund larger purchases. However, it has not signed such arrangements and said it has been able to fund its first order from its own funds.

The COVID-19 rapid test is a small disposable kit that uses a lateral flow colloidal gold-based detection method against viral specific IgG/IgM. It delivers results in around 15 minutes and requires only basic laboratory equipment.

“Learning from countries that managed the coronavirus infections well it is clear that widespread COVID-19 testing, isolation of those testing positive and early treatment are the best methods to control the spread of infection, while saving lives and medical resources,” said Cellmid CEO Maria Halasz.

“We are excited to be able to contribute to Australia’s comprehensive effort to manage this pandemic,” she added.