(Alliance News) - Novacyt SA said Friday it has signed a "major" distribution agreement in Asia for the novel coronavirus test created by its molecular diagnostics unit, Primerdesign.
Shares in Novacyt were 30% higher in London on Friday afternoon at 149.20 pence each.
Novacyt launched a CE-Mark approved molecular test for the clinical detection of the novel coronavirus COVID-19 in Mid-February.
The clinical diagnostic company said the COVID-19 test is the first CE-Mark test for the 2019 strain of novel coronavirus and follows the company's rapid launch of its research use only coronavirus test on January 31.
Novacyt said, as of Thursday, it has sold over GBP930,000 worth of tests and is experiencing high levels of interest in the product.
"The value of quotations has grown significantly as Novacyt is currently involved in active discussions with representatives from a number of countries which have an acute need for tests as part of their national screening programmes. Due to the high level of interest in the Primerdesign COVID-19 test and rapidly evolving nature of this outbreak, the company cannot predict with any certainty the conversion rate of these ongoing enquiries into orders," Novacyt added.
The company has also signed its first "major" distribution agreement for the test with a "global" life sciences company to supply two Asian territories outside mainland China.
Initial sales, during the first six months of the agreement, are expected to be GBP2.1 million. Sales are still subject to local emergency use approval.
The first sales will take place in March.
Novacyt has also signed an OEM agreement with an unnamed US healthcare company for the manufacture and sales of the tests.
The test is being formally evaluated by public health authorities from five countries an the company is in discussions with these organisations to potentially support their national screening requirements for COVID-19.
Novacyt also said it remains in discussion with the US Food & Drug Administration for Emergency Use Approval of the test, which would allow laboratories in the US to use the test for clinical diagnosis on a temporary basis.
"The company has put in place a number of measures to significantly increase production capacity and continues to plan for greater throughput to ensure Primerdesign can meet all current and potential demand. These measures include, if necessary, using the company's manufacturing capacity at both its UK sites," Novacyt added.
Chief Executive Graham Mullis said: "I am extremely pleased with the commercial interest shown in our test to date and to be able to support the global response to monitor and contain the COVID-19 outbreak. The two contracts announced today reinforce how quickly the response to this virus is developing and shows our commitment to support these efforts anywhere in the world.
"We believe the Primerdesign test remains among the quickest and most accurate tests available for COVID-19, as well as being stable for long distance shipping without the need for specialist cold-chain shipping. It is also designed to run on multiple molecular testing platforms commonly used around the world. I am proud of the team who are working extremely hard to meet the regulatory and manufacturing challenges to make our test available to as many affected countries as possible."
The outbreak of coronavirus disease, that was first reported in Wuhan, China, at the end of December, has been declared a global emergency by the World Health Organization. The number of deaths from coronavirus has risen to nearly 3,000.
By Paul McGowan; paulmcgowan@alliancenews.com
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