DeepVerge plc (AIM: DVRG), announces that Innovenn UK Limited (“Innovenn”) has signed a Testing Services Framework Agreement (“Agreement”) with York based Abingdon Health plc (“Abingdon”) for development and manufacture of a range of Lateral Flow Tests (“LFT”) for the Modern Water, Labskin and Skin Trust Medical divisions of the Group.
This follows on from the Memorandum of Understanding, announced in the RNS of 29 March 2022.
The Agreement provides for development of a range of LFT units over the next 12 months in the following areas of interest:
1. Traceable Polymer System (i.e. field test kits) offer operational insight for the use of polymers as dispersants in cooling water and as traceable scale inhibitors for oil and gas that require methods to measure the excess polymer added as a treatment to each system. The new LFT units enable a greater understanding of the water chemistry and the ability to optimise treatment levels, and may ultimately prevent over/underdosing.
2. Sulfate Reducing Bacteria (SRB) optimisation. Used by corrosion engineers to determine the presence of SRB, the current kit format uses multiple sample preparation steps and a colour-change end point. The conversion of this test to LFT accelerates the results by reducing the number of steps compared to tests currently on the market. The SRB business is currently worth in excess of $100k to Modern Water and this easy to use upgrade expands the reach into wider corrosion test markets.
3. 1.7 billion of the world population does not have access to drinkable water[i]. The increasing regulatory support and legislation for high standard maintenance of food and beverage products, pharmaceuticals and other industries, are further increasing the applications of chemically tested water. Environmental LFT tests will include acrylamide, microcystins, algae in the second phase of development.
4. Detecting PFAS – “Forever Chemicals” (Per- and Polyfluoroalkyl Substances) is an exciting new area of interest. PFAS has been added to the US Environmental Protection Agency drinking water treatability database[ii] which creates the need to make informed decisions about the level of PFAS in drinking water. This creates a very large opportunity for LFT single use testing in private homes, hospitals, hotels, pubs, restaurants and food and beverage manufacturing.
5. Wellness tests for Skin Trust Club will include Vitamin D, Cortisol, Menopause, Kidney and Liver function with the potential to extend the test service and product offering, including supplements.
DeepVerge will fund the costs of the projects being undertaken under the Agreement. Abingdon will be exclusive developer and manufacturer of the products subsequently transferred into manufacturing.
The Agreement is effective from 27 May 2022 and remains in force for an initial period of one year. The Agreement shall automatically be renewed for successive one year increments unless either party requests, at least ninety days prior to the anniversary date, that the Agreement not be renewed.
Gerard Brandon, CEO of DeepVerge plc, commented: “With a strong reputation now cemented for delivering innovartive real-time test solutions to aid the prevention of the spread of a range of diseases, we are now focused on upgrading our offering through the conversion of existing multi-step field tests to single-use Lateral Flow Test. This range of new LFT’s has the potential to generate multiple revenue streams throughout Modern Water’s 60+ country distribution network and Skin Trust Club’s rapidly growing club members in the UK, Ireland and the US. Added to the growing list of products and services the LFT range of tests is expected to contribute to Group revenues in early 2023.”
Chris Yates, CEO of Abingdon Health plc, commented:“We are pleased to have signed this commercial agreement with DeepVerge. This strategic partnership will allow both companies to build a long-term collaboration to enable DeepVerge to leverage Abingdon’s lateral flow development and manufacturing engine to launch a range of innovative tests into its core markets. This agreement underlines Abingdon’s reputation as a knowledge leader and expert in the rapidly-growing lateral flow testing market”
