XPhyto Therapeutics (XPHY.C) announced today that it has signed a master supply agreement with Beovita GmhB and Tackleberries GmbH, two German diagnostics, testing and medical logistics companies. Cumulatively, both companies run 10 COVID-19 test centers in Berlin, Germany.
“This is a major commercial milestone for Xphyto. The successful launch of our first diagnostic product, Covid-ID Lab, represents significant validation of our rapid point-of-care care diagnostic business strategy…Our portable Covid-ID Lab is designed to be one of the fastest PCR systems in the world, while our platform is economic at low to mid-range sample volumes. We anticipate strong and sustainable demand for our rapid and versatile PCR system and look forward to further expanding our reach,’ said Hugh Rogers, chief executive officer and director.
According to Fortune Business Insights, the global COVID-19 diagnostic market was valued at USD$6.22 billion in 2020 and is projected to reach USD$8.04 billion by 2027, registering at a CAGR of 2.7%. Although this growth rate isn’t considerable, the presence of new coronavirus variants has created a sustainable market for COVID-19 diagnostics. With regards to Germany, the Centers for Disease Control and Prevention (CDC) has classified the country’s COVID-19 levels as high, with 3,727,333 confirmed cases and 90,819 deaths.
With this in mind, there is a strong demand for reliable and rapid testing in Germany to monitor the changing dynamics of the pandemic throughout the summer. The delivery of roughly 1,000 Covid-ID Lab tests to centers in Berlin is set to begin this week, starting with a short trial period to integrate and evaluate XPhyto’s new PCR test system. XPhyto’s Covid-ID Lab is a rapid RT-PCR test used for detecting SARS-CoV-2 based on the reverse transcriptase polymerase chain reaction (RT-PCR) method. Put simply, this test enables researchers to amplify and detect specific genetic material within a sample in real-time, including SARS-CoV-2.
“Rapid, reliable and decentralized PCR tests are exactly what the market needs right now; precisely because incidence rates are falling and therefore sample numbers are decreasing. Large centralized laboratories will no longer operate profitably due to their high-throughput testing equipment or alternatively, they will have to wait for sufficient sample numbers, therefore delaying results…There will be areas of application where rapid, reliable and universally recognized results are always required. Accordingly, we see a specialized and sustainable opportunity for the Covid-ID Lab and anticipate a steep order volume uptake in the near future,” stated Michael Kretzer, chief executive officer of Max Pharma, pharmaceutical wholesaler and Xphyto’s distribution partner.
Using this method, XPhyto’s Covid-ID Lab tests only require 20 minutes of run time. After this process has concluded, the SARS-CoV-2 virus, if present, is detected on a test chip within 5 minutes and can immediately be read visually. Normally, PCR testing models collect samples which are then shipped to large centralized and automated labs for processing. However, Covid-ID Lab sample processing will occur on site, which is expected to yield faster results, more versatile test center options, and cost-effectiveness at lower testing volumes.
XPhyto’s share price opened at $1.80 and is currently trading at $1.74 as of 10:42AM ET.
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