By Samuel Indyk
Investing.com – Omega Diagnostics (LON:ODX) shares were trading higher on Monday morning after the company announced it has signed an exclusive partnership agreement with DAM Health. Under the agreement, Omega will supply its VISITECT professional use COVID-19 Antigen tests to DAM Health’s clinics throughout the UK and Europe.
The AIM-listed company said it had already received an initial purchase order in excess of £750,000 to supply the lateral flow tests.
Under the terms of the agreement, DAM Health will exclusively use, sell and promote Omega’s test throughout its network of over 100 clinics in the UK and Europe. Currently, DAM Health is using around 200,000 in-clinic COVID-19 tests per month.
Speaking about the deal, Omega Diagnostics Chief Executive Colin King said: “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.”
In the COVID space, there is potential for broadening the partnership to include Omega’s antigen self test once it has been approved. The partnership could also be expanded outside of Europe as DAM Health expands its own international network of clinics globally.
The agreement will also allow Omega to honour its existing contract with the UK Department of Health and Social Care (DHSC) where it is still awaiting a decision as to which test the company will manufacture.
The agreement comes soon after the UK relaxed its testing requirements for passengers returning from abroad. Last month, the government said those returning from countries not on the Red list will only have to take a lateral flow test, rather than a more expensive PCR test.
At 09:10BST, Omega Diagnostics shares were trading higher by 9.2% at 54.04 pence per share.