NEW YORK — Relay Medical said on Monday that its HemoPalm subsidiary has entered into a binding letter of intent to acquire certain market rights to SARS-CoV-2 tests developed by Proprietary Innovation Labs.
The deal covers Proprietary Innovation's line of SARS-CoV-2 assays including its lateral flow chromatographic-based antibody and antigen tests, both of which are CE marked. The tests are suitable for point-of-care testing and provide results within 15 minutes, Relay said.
Under the terms of the letter of intent, HemoPalm will have the exclusive sales and distribution rights worldwide, excluding China, to the tests. Relay and Proprietary Innovation will share profits earned from sales of the tests, with the company that sources tests for a purchaser receiving 60 percent of the profits and the other company receiving the remaining 40 percent.
Relay has also agreed to provide 400,000 of its common shares to Proprietary Innovation ahead of the signing of a definitive agreement between the Canadian companies.
Additional terms were not disclosed.
Relay said that Proprietary Innovation can produce over 25 million tests per month through its contract manufacturers, and that the tests may be submitted to the US Food and Drug Administration for Emergency Use Authorization and to Health Canada for approval under that country's Medical Devices Interim Order.