NEW YORK — Atomo Diagnostics said on Thursday that it has signed an agreement to initially provide nearly 400,000 of its blood testing devices, and potentially millions more over the rest of the year, to NG Biotech for use for its recently launched SARS-CoV-2 test.
Atomo also said that it has closed an oversubscribed A$30 million ($18.2 million) initial public offering at A$.20 per share. The company expects to float its shares on the Australian Securities Exchange in mid-April.
NG Biotech's CE-marked test, called NG-Test IgG-IgM COVID-19, is designed to detect and differentiate SARS-CoV-2-specific immunoglobulin M and IgG immunoglobulin G antibodies in a drop of blood. Results from the test, which can be used at a patient's bedside, are provided within 15 minutes.
Atomo's device, which is used for the Australian company's lateral flow HIV self-test, is a small cartridge that includes a lancet for obtaining a finger stick blood sample and a collection unit that delivers the sample to a test strip.
Under the terms of the binding agreement, Atomo will supply 397,200 of its self-testing devices to NG Biotech for use with its SARS-CoV-2 test. Guipry, France-based NG Biotech has the right to purchase a total of roughly 2.5 million devices, including the initial supply, over the course of 2020.
NG Biotech has the exclusive right to use Atomo devices in the manufacture and sale of SARS-CoV-2 tests in France and the UK, and nonexclusive rights in other European markets.
Atomo said that the companies intend to enter into an additional binding supply agreement for Atomo products beyond 2020.
Financial terms of the deal were not disclosed.
"We've previously demonstrated to healthcare providers, regulators, and to the market the ability of our devices to deliver reliable results for challenging diseases like HIV within 15 minutes," Atomo Cofounder and CEO John Kelly said in a statement. "We are delighted to be able to now deploy our products with our OEM partner NG Biotech in the fight against COVID-19."
Kelly added that Atomo is also in discussions with three undisclosed diagnostic companies about the use of its devices for COVID-19 tests. The company said that it expects to use A$11.7 million from its IPO to expand its manufacturing and distribution capabilities to meet anticipated demand for its devices for HIV and SARS-CoV-2 tests.