Queensland-based chemistry company AnteoTech (ASX: ADO) has signed a non-binding heads of agreement with German pharmaceutical and life sciences company Merck KGaA to co-develop products for the world’s rapidly-growing point of care diagnostic testing market.
The products will harness Merck’s full range of europium particles activated with AnteoBind to offer an advanced toolset for assay developers.
The combined products will be targeted at developers looking to harness the fluorescent qualities of Europium and the conjugation improvement properties of AnteoBind.
AnteoTech chief executive officer Derek Thomson said the Merck signing follows an agreement by both companies to leverage their technologies and create a “unique commercial opportunity”.
“The opportunity to co-develop a product set leveraging Merck’s customer base, business development capability and distribution network will enable AnteoBind to be utilised across a growing sector of the global lateral flow assay development market,” he said.
“We see great potential for this relationship to accelerate AnteoBind’s use and profile in the market and we look forward to completing the commercial process as soon as possible.”
Finalising commercial contracts will follow an agreed roadmap and will mirror product development processes governed by joint quality policies.
The combined product set is expected to be launched in early 2021.
Point of care testing encompasses any lateral flow assay test which is performed close to or near the patient and can include devices such as dipsticks for urinalysis, handheld devices like glucose meters, or sophisticated molecular analysers to detect infectious diseases.
Industry research shows the global point of care diagnostics market was valued at $29.15 billion in 2019 and is expected to register a compound annual growth rate of 3.2% to sit at $37.37 billion by 2027.
Likewise, the global lateral flow assay development market – valued at $10.09 billion last year – is expected to reach $14.96 billion by 2024, driven by low-cost, rapid and portable detection devices and their ability to provide an immediate diagnosis.
In November, AnteoTech announced it had signed an agreement with IMRA America Inc for the joint development of AnteoBind-coated gold particles to be used in point-of-care diagnostics.
IMRA is a recognised brand in the lateral flow assay market.