Atomo Diagnostics HIV tests deal worth up to $30m

Atomo Diagnostics has signed a deal for its HIV test that could be worth up to $30m.

Atomo Diagnostics chief executive John Kelly. Picture: Hollie Adams.

Atomo Diagnostics, backed by former Macquarie head Allan Moss and property developer Lang Walker, has signed a deal for its HIV test that could be worth up to $30 million.

The Sydney medical device developer, which is also backed by the Bill & Melinda Gates Foundation, today is set to announce a deal with Korea’s Access Bio to combine their expertise in HIV testing.

John Kelly, chief executive of Atomo Diagnostics, said Access Bio had high volume manufacturing capabilities, making more than 100 million diagnostic tests a year.

“They not only have production skills but also marketing skills in global health,” Mr Kelly said.

“They are a good channel partner for us. We decided to partner to help them bring our HIV diagnostics to global health tender markets.

“Essentially, we are almost franchising our HIV business in global health professional use to Bio Access, because they have the skill and infrastructure to capitalise on that.”

Mr Kelly said Atomo had developed a HIV diagnostic device that simplified the procedure and removed errors, making it a more effective way to screen for the condition.

“We are giving Access Bio access to our test technology and they are going to buy our devices off us to build a market in global health channels where they have access to large government health department contracts,” he said.

Access Bio will commercialise the new test product under its CareStart brand in territories across Africa, Southeast Asia, South America and CIS countries. In September 2016, the World Health Organisation forecast that demand for HIV rapid diagnostic tests in the territory would increase by one third, to reach more than 400 million tests a year by 2020.

The companies did not disclose the value of the deal, but it is understood the 10-year-plus supply agreement could be worth between $20m and $30m to Atomo over the life of the contract.

“Atomo’s all-in-one test devices, which simplify and standardise test procedures, will help us improve the performance and user-friendliness of our HIV test for our customers,” Access Bio founder and chief executive Young Ho Choi said.

Mr Kelly said his company was finalising a similar deal to the one signed with Access Bio for Atomo’s HIV self-test.

“Those two contracts together would take us through to being a profitable business with sizeable, long-term agreements,” he said.

“It will put us on the map as a viable, sustainable diagnostic company globally.

“The fact that these large global companies are paying to licence our technology rather than develop their own speaks to the innovation. We will see that expand beyond HIV to other applications.”