City Briefs: Kromek and Avacta
Detection company, Kromek which focused on the medical, security screening and nuclear markets has won a contract worth a minimum of $960,000 (£692,000) over the life of the deal.
The contract which is in the nuclear detection area of the business includes $260,000 to customise its CZT detector platform to integrate into a new radiation detection product that will launch in Asia. Work is said to start immediately and be completed by the end of 2021.
The contract will then see the Huddersfield-based group suply the customised platform under a three year contract which is worth a minimum of $700,000 (£504,000).
Dr Arnab Basu, CEO of Kromek, said: “We are delighted to have been designed into another product in the nuclear detection market. By incorporating Kromek’s CZT technology, our customers are able to differentiate their radiation detection products by offering a superior performance while maintaining a small footprint. We are also pleased that this long-term contract will contribute to our revenues for the current period as well as support our visibility over the next three years. We look forward to developing this customised solution and expanding our relationship with this product manufacturer.”
The deal is expected to see approximately $150,000 realised in the current financial year.
This is the lates contract win for the business which last week reported £536,000 worth of new orders.
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Avacta Group has entered into a license agreement with Biokit, a Werfen Company, to incorporate its proprietary Affirmer reagents into a in-vitro diagnostic (IVD) product.
Alastair Smith CEO Avacta Group
Biokit is recognised and renowned as a Centre of Excellence with consolidated experience worldwide in research, development and manufacturing of assays and biomaterial solutions for IVD use. As a result of the deal it will have the right to develop, manufacture and commercialise through original equipment manufacturer partners a diagnostic biochemical test.
The Wetherby-based firm will receive royalties on future sales of any products brought to market following completion of product development and regulatory approvals, however no financial details were disclosed.
Dr Alastair Smith, chief executive of Avacta Group said: “I am delighted to have established this partnership with Biokit, a world-renowned IVD company, which further validates the Affimer reagent platform for diagnostics. Avacta’s diagnostics business model combines development of a wholly owned pipeline of products, including the SARS-CoV-2 rapid antigen test, with licensing of Affimer reagents to diagnostic development partners such as Biokit.”
Smith added that there was further potential for “the partnership between our two companies [Avacta and Biokit] to continue and expand to include other diagnostic targets and future Affimer-based IVDs.”
This latest announcement follows the news yesterday that Avacta’s SARS-CoV-2 was capable of detecting the dominant new variants of the coronavirus alongside the original strain.
The firm saw its share price increase 9% yesterday to 217p per share, a five year high for the business and more than 13 times higher than the value on 15 March 2020 – 16.38 p per share.
