- AnteoTech (ADO) has finalised and signed a contract manufacturing agreement with Spanish manufacturer, Operon
- During a three-year exclusivity period, Operon will have the first right of refusal to manufacture AnteoTech’s COVID-19 antigen rapid test (ART)
- However, this is only exercisable if Operon has the capacity to produce enough EuGeni COVID-19 ARTs to meet European market demand
- Operon currently has a manufacturing capacity ofeight million complete tests per year
- AnteoTech is up 10.8 per cent and trading at 33.3 cents per share
AnteoTech (ADO) has finalised and signed a contract manufacturing agreement with Spanish manufacturer, Operon.
Based in the Spanish city of Zaragoza, Operon exports to about 50 countries around the world. In addition to product lines in raw materials, immunochromatography, and molecular diagnostic tests, the company also provides customised services including the manufacture of lateral flow tests.
Under the contract manufacturing agreement, AnteoTech and Operon have agreed to a three-year exclusivity period. During this time, Operon will have the first right of refusal to manufacture AnteoTech’s COVID-19 antigen rapid test (ART), for supply to the European market.
Operon has already been producing EuGeni COVID-19 ARTs for some time, to supply all sample and market seeding activities being undertaken around the world. AnteoTech first completed the transfer of its test technology to Operon in March, followed by completion of several reel-to-reel lateral flow strip scaled up production runs.
Operon’s first right of refusal to manufacture the tests for the market is only exercisable if the company has the capacity to produce enough EuGeni COVID-19 ARTs to meet European market demand. Currently, Operon has a manufacturing capacity of eight million complete tests per year, and roughly 20 million lateral flow strips per year.
This capacity should be sufficient to allow AnteoTech to meet initial demand for the EuGeni ART, and provide the company with the option to scale manufacturing and meet anticipated sales volumes.
Operon is investing in a new plant which will more than triple its capacity, and will be available sometime in 2023.
AnteoTech is up 10.8 per cent, trading at 33.3 cents per share at 12:46 pm AEST.