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(Sharecast News) - Rapid test developer and manufacturer Abingdon Health announced a "significant contract" with a European customer on Friday, for the production of lateral flow device (LFD) components for a Covid-19 antigen test.
The AIM-traded firm said the contract was for an initial 12-month period, with an option to extend, and would start with the primary production of the key biochemical-sprayed nitrocellulose component of the LFD.
It said there was also an option to expand to other aspects of device manufacture, including production and lamination of other membrane components, and ultimately production of complete foiled devices.
The contract was with an unnamed European customer, with the initial phase worth a minimum of £2.7m based on minimum specified monthly order quantities and pricing at current sterling-dollar exchange rates, for the first year.
All raw materials required for production would be provided by the customer.
Abingdon said there would be an initial technical transfer process, paid for by the customer, which was expected to take about two months.
"We are pleased to have signed this contract with our European partner," said chief executive officer Chris Yates.
"The contract highlights the strengths of Abingdon's flexibility in being able to offer a range of first-class contract services across primary and secondary production.
"We continue to make commercial progress in other areas and look forward to updating the market in due course."
At 1314 BST, shares in Abingdon Health were up 25.85% at 12.27p.
Reporting by Josh White at Sharecast.com.
