Applied DNA Sciences agrees deal for bulk DNA manufacturing
In a deal that sounds more like something to come out of a science-fiction novel, Applied DNA Sciences has agreed a five-year deal with an unnamed chemical company to supply DNA in large quantities. The DNA is manufactured through proprietary polymerase chain reaction methods, with the technology acquired through the acquisition of Vandalia Research, 2015.
The biotech specialises in the DNA-based supply chain, anti-counterfeiting and anti-theft technology, product genotyping and product authentication solutions through its DNA technology. In this particular deal, the DNA will be used within in vitro studies, or test tube experiments. Applied DNA Sciences suggested that this technology can be used in research across vaccines, diagnostics, reagents, bio-agriculture, and gene therapies for existing and emerging markets.
"The ability to offer PCR-based DNA production that is more efficient and cost-effective is unique and a significant competitive advantage in the marketplace relative to other DNA production methods," said Dr. James A. Hayward, President and CEO of Applied DNA. "This long-term supply agreement reflects efforts being made to cross-sell our cutting-edge capabilities to both existing and prospective pharmaceutical and diagnostics customers, opportunities that we believe hold the potential to yield similar, long-term, recurring order-flow. Together with an increasing number of in-bound inquiries from prospective customers that recognize the benefits of PCR-produced DNA in their product, we believe this business should see growth going forward."
The company announced that the deal will generate $500,000 in annual revenue, beginning in 2018. The deal will see quarterly shipments of DNA products over the duration of the five-year deal. There is also potential to extend the deal by a further three years after the initial agreement period terminates.