London-listed biotechnology group, Novacyt (AIM:NCYT) on Friday agreements for its Primerdesign product which is aimed at testing the novel COVID-19 coronavirus.
The international clinical diagnostics specialist told investors that it had signed a major distribution deal for the COVID-19 test with a global life sciences company to supply the test to two Asian territories outside mainland China.
Initial sales, which are subject to local emergency use approval, are anticipated to be £2.1m (€2.5m) during the first six months of the agreement.
The group also announced an OEM agreement with an unnamed US healthcare group to manufacture and sell the tests.
“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,” said Graham Mullis, Chief Executive of Novacyt.
Shares in Novacyt were trading 23.91% higher at 142.5p during Friday trading.
The Directors of the group have said they believe Novacyt, which is listed in both Paris and London, is well placed to support the growing global demand for nCoV testing.
According to Reuters, Novacyt’s progress in its COVID-19 product has pushed shares to record highs with the stock surging by more than 800% in Paris since the start of 2020.
Public health authorities around the world are pursuing a variety of strategies to test for COVID-19 whilst many companies, including Novacyt, are working to develop tests.
The group’s Primerdesign test is currently under review by the US FDA for Emergency Use Approval which would allow the test to be used for clinical diagnosis of COVID-19 in the US.
Novacyt has said it continues to plan for greater throughput to ensure Primerdesign can meet all current and potential demand which could, if necessary, include using the group’s manufacturing capacity at both its UK sites.
European stocks extended a historic week of losses on Friday as the coronavirus outbreak continues to pummel global markets into correction territory, CNBC reported this morning.
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