- Atomo Diagnostics (AT1) and Access Bio are restructuring their commercial relationship to reflect structural changes in the market caused by COVID-19
- The new agreement is effective immediately and expires at the end of 2022
- Under the deal, AT1 will receive a one-off fee from Access Bio as replacement for any repayments due under the parties’ existing agreements
- Atomo also has the right to purchase up to 10 million COVID-19 rapid antigen tests at a fixed price for professional use in Australia and New Zealand
- Shares are down 11 per cent at 30.3 cents at 2:49 pm AEST
Atomo Diagnostics (AT1) and US-based diagnostics specialist, Access Bio, are restructuring their commercial relationship to reflect structural changes in the COVID-19 diagnostics market.
AT1 is an Australian medical device company that supplies unique, integrated rapid diagnostic test (RDT) devices and finished tests to the diagnostics market globally.
Under a new agreement, which is effective immediately and expires at the end of 2022, Atomo will receive a one-off fee from Access Bio, considered by AT1 to be material and a replacement for any repayments it was due under the existing agreements.
The new deal also provides Atomo the right, but not the obligation, to purchase up to 10 million COVID-19 rapid antigen tests at a fixed price between now and the end of the contract for professional use in Australia and New Zealand.
AT1 said the test was listed on the Australian Register of Therapeutic Goods (ARTG) by the Therapeutic Goods Administration (TGA) in October last year following the parties’ supply deal for antigen testing made in September. Atomo currently sells this device in the Australian market to a number of channels.
Further, Atomo said the new agreement gave it the right to purchase up to 10 million COVID-19 Rapid Antigen Self-Tests during 2022, for sale in the Australian market only.
Access Bio’s self-test has reportedly received Emergency Use Authorisation from the US Food and Drug Administration and will be delivered to AT1 as an Atomo-branded product.
AT1 said it intended to apply to the TGA for the self-test to be listed on the ARTG for self-test use in Australia, subject to approval.
Meanwhile, conditional to Access Bio meeting the one-off fee obligation and other certain product supply requirements under the latest deal, the company’s previous agreements announced in July, 2020, and December, 2017, will both terminate.
AT1 said the new deal would enable the parties to better align themselves to meet opportunities resulting from changes in the diagnostic landscape in the 2022 financial year.
Further, the company said ending its OEM agreement with Access Bio would not affect its current HIV business for which Atomo is the listed manufacturer of its own HIV Self-Test and AtomoRapid HIV professional use tests.
Shares are down 11 per cent at 30.3 cents at 2:49 pm AEST.