Shares of Alva-based Omega Diagnostics Group plc rose as much as 8% on Monday after it signed a head of terms partnership agreement with DAM Health Limited, a provider of Covid-19 “fit-to-fly” tests.
Under the agreement, Omega will exclusively supply its Visitect professional use Covid-19 antigen tests (LFT) to DAM Health’s clinics throughout the UK and Europe.
Omega has already received an initial purchase order in excess of £750,000.
“With Covid-19 cases surging again and PCR requirements being replaced with antigen LFTs, this partnership, which is for an initial period of 12-months, sees two innovative and pioneering UK companies combining their expertise and knowledge as we learn to live with COVID-19,” said Omega.
“Manufactured in the UK, a recent 2021 study by FIND Diagnostics, a leading testing authority in Geneva, Switzerland, found the Visitect test delivered results of 100% in specificity and 96.4% in sensitivity.
“Under the agreement, DAM Health agrees to exclusively use, sell and promote Omega’s test throughout its network of over 100 clinics in the UK and Europe.
“DAM Health is currently using approximately 200,000 in-clinic COVID tests per month.
“Whilst the initial agreement centers around the Visitect professional antigen LFTs, there is the possibility to broaden the partnership to include Omega’s Visitect antigen self-test LFT (once approved) and for DAM Health to sell Omega’s Food Detective product throughout its network.
“There is also provision to extend this relationship beyond Europe, as DAM Health expand their international network of clinics globally.
“A further update will be provided on this in due course.
“Additionally, this agreement with DAM Health allows Omega to honour its existing contractual commitments with the Department of Health and Social Care (DHSC).
“Omega still awaits a decision from DHSC as to which Covid-19 test the Company will manufacture.”
Omega CEO Colin King said: “We have been actively seeking commercial partners for our Covid-19 antigen tests with the support of Lansdown Strategic Capital.
“We are delighted to be to be utilising some of our lateral flow test production capacity and to be working with DAM Health, who are leaders in the space.
“Reaching a commercial agreement with a leading and fast-growing testing provider is a major milestone for the company in bringing our gold-standard test to market and we look forward to working collaboratively with DAM Health and are hopeful that this partnership can be broadened to cover more of Omega’s products, not just in the COVID space.”