Atomo Diagnostics in HIV test deal with Mylan

Atomo Diagnostics has signed a $20m deal with global pharma giant Mylan to sell its HIV test in 100 countries.

Investor Allan Moss is a backer of Atomo.

Atomo Diagnostics, backed by former Macquarie head Allan Moss and property developer Lang Walker, has signed a deal with global pharma giant Mylan to sell its HIV test in 100 countries.

Sydney-based Atomo, which is also backed by the Bill & Melinda Gates Foundation, said it expected the deal would deliver tens of millions in sales royalties.

John Kelly, founder and chief executive of Atomo Diagnostics, said it was a “transformative” deal for the company.

“By dollar value, it is the largest deal we have done by a multiple of several,” he said.

“But more importantly than the dollar value, it is the first deal we have done with a tier-one major healthcare company and the first time a multinational has validated the business and the product.

“This means we are now into the next phase where we can start to talk to the larger players rather than early adopter-type partners.”

The strategic partnership means Atomo’s HIV at-home test will be rebranded as a Mylan product in more than 100 low and middle-income countries.

Mr Kelly said that while in some countries, such as the US and in Europe, HIV self-tests were readily available in pharmacies, HIV testing in low- and middle-income countries remained dependent on the diagnostic test being conducted in formal settings by trained professionals.

The HIV test allows users to screen themselves in their own home with an easy-to-use device, with results delivered in just 15 minutes.

Mr Kelly said the deal was a long-term supply agreement, adding that Atomo had also had initial discussions with Mylan about other uses for Atomo’s ­diagnostic tests.

“We are hoping this will become a valuable partnership with a large multinational listed pharma partner, so we can bring our ­diagnostic products to market with an established customer ready to commit to commercial volumes as part of that transaction,” he said.

Mr Kelly added that on the back of the Mylan deal, the company was now seeking a ­partner for the North American market.

Heather Bresch, chief executive of Mylan, said the partnership with Atomo to supply HIV rapid diagnostic tests for self-testing was an important step in Mylan’s goal of preventing HIV infections and expanding treatment. Mylan operates in 160 countries and reported 2017 revenues of $US11 billion from sales of more than 7000 products.

Under the terms of the agreement, Mylan has exclusive rights to commercialise the products in more than 100 countries in Africa, Asia, the Middle East, the Commonwealth of Independent States and Latin America.

Mylan, which is the world’s largest supplier by volume of HIV/AIDS therapies, plans to launch the Mylan HIV self-test in global markets early next year. The test is still awaiting regulatory approval in Australia and Atomo is also raising about $10m with a market listing on the horizon.

Mr Kelly said existing shareholders had supported the raising and discussions had now been expanded to other funds about pre-IPO opportunities.

“We are looking to do a roadshow off the back of this deal and there is already a bit of interest from overseas,” he said. “The Mylan deal takes risk off the table for investors coming into an IPO.”