Australian company Atomo Diagnostics (ASX:AT1) has announced it has entered an agreement with Indian specialist diagnostic company PinkTech Design, which trades as DIVOC Laboratories (DIVOC), to launch its TGA Approved and CE Marked AtomoRapid COVID-19 antibody test in the Indian market.
Under the agreement, DIVOC will distribute the AtomoRapid COVID-19 rapid test in the Indian market on a non-exclusive basis.
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 the second quarter of 2021.
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 said it 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.
According to Atomo Diagnostics co-founder and managing director John Kelly, “We are delighted to be able to offer our antibody rapid test in another large international market. 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.”