- Cellmid executes non-exclusive Introducer Agreement with Emergence Technology Pty Ltd to broaden its SARS-CoV-2 Diagnostic Product Portfolio offering to customers.
- Per the agreement, Emergence to also ensure receipt of various regulatory approvals and licenses for the sale of the Tests in different jurisdictions where sale is intended to be made. It will also provide all clinical, assay related and marketing material to Cellmid.
- Cellmid considers this to be a material agreement whereby the Commission, if received, would be calculated on the gross margin of the relevant sales.
Cellmid Limited (ASX:CDY), a life sciences company based in Australia, and Emergence Technology Pty Ltd have executed a non-exclusive Introducer Agreement, as declared to the market on 4 June 2020. Pursuant to the agreement, Cellmid would introduce its current customers, parties it received expressions of interests (EoIs) from since 27 March 2020 and new customers in Australia as well as overseas, to Emergence Technology, for the supply of the Tests, given local regulatory conditions are met.
Cellmid Limited, as a consumer health business, is developing various biotechnology products. The Company recently commenced sale of a point of care antibody test for SARS-CoV-2 (novel 2019 coronavirus), which has turned into a pandemic causing global havoc. Cellmid has two 100%-owned subsidiaries:
- Advangen Limited is focussed on development and sale of the first of its kind and best in class, clinically tested anti-aging products for skin, hair and body.
- Lyramid is dedicated towards creating unique therapies and tests for the diagnosis of age-related diseases like autoimmune and inflammatory conditions.
CDY stock last traded at a price of AU$ 0.185, on 5 June 2020.
Melbourne-based multidisciplinary company Emergence is focussed on utilising scientific expertise to solve some pressing real-world problems under the leadership of the only director and shareholder, Mr Cun Liu. To achieve its goals, the Company has established strong ties with China-based medical device manufacturers and secured supply for the Tests.
Cellmid’s Introducer Agreement – Key Highlights & Rationale
The Agreement is effective immediately and will remain there in force until Emergence ceases to receive sales proceeds from Cellmid introduced Customers. Emergence would not only supply Tests, but also secure supply based on its current and future authorisations from the manufacturers. The agreement allows Emergence to nominate third parties (with Cellmid’s consent) for facilitating the supply of the Tests to customers introduced by Cellmid while the Emergence would also be taking care of getting regulatory approvals and licenses in place to sell the Tests in targeted countries.
Emergence’s existing agreements with certain manufacturers would last until at least May 2021 and are negotiable for extensions.
The first Test is Zhuhai Livzon Diagnostics’ Kit for IgM/IgG Antibody to Coronavirus (SARS-CoV-2) (Lateral Flow), which allows for distinct measurement of IgG and IgM antibodies on separate device; and the second is Ustar Biotechnologies nucleic acid detection diagnostics as presence of nucleic acid is the accepted standard for acute diagnosis of COVID-19 and represents an important addition to Cellmid’s product offerings.
The agreement can be terminated by either company by providing six months’ notice.
Furthermore, Cellmid holds TGA sponsorship for the sale of Wondfo SARS-CoV-2 antibody test (Lateral Flow Method) within Australia. The Company had previously announced, on 27 March 2020, of a supply agreement with Australia Application Pty Ltd, which is valid until 30 June 2020 and could be extended further if a written consent is provided by Wondfo.
Currently, Emergence is also trying to get distributorship of Wondfo test in Australia and worldwide via negotiations with Wondfo for the same. If successful, CDY would present its relevant consumers to Emergence in foreign markets and inlcude access to supply under the current agreement (with Australia Application) for sale in the Australian region.
The Wondfo test is used for detection of IgM and IgG antibodies together in a single result strip but in certain scenarios, separate detection of IgM and IgG antibodies is required/ preferred.
Besides, scientific evidence has increasingly been highlighting that the use of nucleotide and antibody tests in combination can largely improve the accuracy of diagnosis for patients infected with COVID-19. Thus, obtaining access for CDY’s consumers to a swift nucleotide test has been very crucial in this regard. Due to this, Cellmid has been, for a while, striving to expand its SARS-CoV-2 diagnostic product portfolio to be able to offer both antibody and nucleotide tests to its customers.
Additionally, expanding its geographic reach for the SARS-CoV-2 Tests beyond Australia has also been a key agenda for Cellmid and the Agreement signed with Emergence would allow for exactly that, through a much low-cost and low-risk pathway.
Finally, the recently signed Agreement has a provision of payment in the form of Commission to Cellmid, in relation to sales on introductions it makes to potential customers.
Although, Cellmid considers this to be a material agreement, but the Company is not able to predict about the number of sales Emergence would be able to achieve to the Customers and therefore has no indication of whether the Commission would be received. The Commission, if received, would be calculated on the gross margin of the relevant sales, given Cellmid is allowed to pursue the overseas expressions of interests and would be able to expand its product offering to its Customers.