Testing Services Framework Ag with Abingdon Health

RNS Number : 1617N

Deepverge PLC

30 May 2022

 

30 May 2022

DeepVerge PLC

("DeepVerge" or "the Company" or "the Group")

DeepVerge and Abingdon Health sign Testing Services Framework Agreement

Development of new Lateral Flow Test range

DeepVerge plc (AIM: DVRG), announces that Innovenn  UK Limited ("Innovenn") has signed a Testing Services Framework Agreement ("Agreement") with Abingdon Health plc ("Abingdon") for development and manufacture by Abingdon of a range of Lateral Flow Tests ("LFT") for the Modern Water, Labskin and Skin Trust Medical divisions of the Group. This follows on from the Memorandum of Understanding, announced in the RNS of 29 March 2022.

The Agreement provides for development of a range of LFT units over the next 12 months in the following areas of interest:

1.  Traceable Polymer System (i.e. field test kits) offer operational insight for the use of polymers as dispersants in cooling water and as traceable scale inhibitors for oil and gas that require methods to measure the excess polymer added as a treatment to each system. The new LFT units enable a greater understanding of the water chemistry and the ability to optimise treatment levels, and may ultimately prevent over/underdosing.

2.  Sulfate Reducing Bacteria (SRB) optimisation. Used by corrosion engineers to determine the presence of SRB, the current kit format uses multiple sample preparation steps and a colour-change end point. The conversion of this test to LFT accelerates the results by reducing the number of steps compared to tests currently on the market. The SRB business is currently worth in excess of $100k to Modern Water and this easy to use upgrade expands the reach into wider corrosion test markets.

3.  1.7 billion of the world population does not have access to drinkable water[i]. The increasing regulatory support and legislation for high standard maintenance of food and beverage products, pharmaceuticals and other industries, are further increasing the applications of chemically tested water. Environmental LFT tests will include acrylamide, microcystins, algae in the second phase of development.

4.  Detecting PFAS - "Forever Chemicals" (Per- and Polyfluoroalkyl Substances) is an exciting new area of interest. PFAS has been added to the US Environmental Protection Agency drinking water treatability database[ii] which creates the need to make informed decisions about the level of PFAS in drinking water. This creates a very large opportunity for LFT single use testing in private homes, hospitals, hotels, pubs, restaurants and food and beverage manufacturing.

5.  Wellness tests for Skin Trust Club will include Vitamin D, Cortisol, Menopause, Kidney and Liver function with the potential to extend the test service and product offering, including supplements.

DeepVerge will fund the costs of the projects being undertaken under the Agreement.  Abingdon will be exclusive developer and manufacturer of the products subsequently transferred into manufacturing.

The Agreement is effective from 27 May 2022 and remains in force for an initial period of one year. The Agreement shall automatically be renewed for successive one year increments unless either party requests, at least ninety days prior to the anniversary date, that the Agreement not be renewed.

Gerard Brandon, CEO of DeepVerge plc, commented:

"With a strong reputation now cemented for delivering innovartive real-tme test solutions to aid the prevention of the spread of a range of diseases, we are now focused on upgrading our offering through the conversion of existing multi-step field tests to single-use Lateral Flow Test. This range of new LFT's has the potential to generate multiple revenue streams throughout Modern Water's 60+ country distribution network and Skin Trust Club's rapidly growing club members in the UK, Ireland and the US. Added to the growing list of products and services the LFT range of tests  is expected to contribute to Group revenues in early 2023."

Chris Yates, CEO of Abingdon Health plc, commented:

"We are pleased to have signed this commercial agreement with DeepVerge. This strategic partnership will allow both companies to build a long-term collaboration to enable DeepVerge to leverage Abingdon's lateral flow development and manufacturing engine to launch a range of innovative tests into its core markets. This agreement underlines Abingdon's reputation as a knowledge leader and expert in the rapidly-growing lateral flow testing market"

What is a lateral flow immunoassay?

A lateral flow test, or immunoassay is a simple to use diagnostic device used to confirm the presence or absence of a target analyte, such as pathogens or biomarkers in humans or animals, or contaminants in water supplies, foodstuffs, or animal feeds. The most commonly known type of lateral flow rapid test strip is the pregnancy test or testing the presence of the COVID-19 virus.

What are PFAS?

Per and Polyfluoroalkyl Substances (PFAS) have been nicknamed 'forever chemicals' as they don't breakdown, leading to bio-accumulation in our environment and in the human body over time. These compounds are man-made and were developed in the 1940s. Their useful properties include being non-stick and water resistant.

According to the Nordic council of Ministers [iii] , the cost of inaction regarding PFAS in the environment and for human health has been estimated at €50 - €82 billion Euro per year, for all European Economic Area. With the known health issues the accumulation of PFAS causes, government bodies around the world [iv] are increasing their commitment to address this issue. Although there are more countries implementing regulation for the monitoring of PFAS, there is still the need for real-time data of these compounds in wastewater treatment facilities.  Remote analytical testing will help improve the monitoring and remediation of PFAS, for this more portable and accessible detection methods are required.

Growing Consumer Interest in Water Safety and Quality

The rising number of waterborne disease outbreaks, adulteration cases, and toxicity have increased the threat to water safety. According to the Centers for Disease Control and Prevention (CDCP), diseases spread through water affect over 7 million people in the United States every year. In addition, waterborne diseases are responsible for many different types of illnesses, including respiratory illnesses, neurological illnesses, skin problems, gastrointestinal illnesses, and bloodstream infections. Also, people are infected by waterborne germs not just when they drink water but also when they breathe in contaminated water droplets or when water gets in their ears or nose. With the increasing incidences of diseases and awareness about waterborne diseases across the world, the current water safety testing market is shifting toward rapid microbiological tests. Growing consumer interest in water quality has propelled high technological advancements, thereby driving the water safety testing market in both developing and developed countries. Enhanced surveillance and detection methods have also contributed to the growth of water safety testing scenarios, specifically in developed economies.

DeepVerge plc	Gerard Brandon, CEO	[phone]
SPARK Advisory Partners Limited (Nominated Adviser)	Neil Baldwin/Andrew Emmott	[phone]
Turner Pope Investments (TPI) Limited (Broker)	Andy Thacker/James Pope	[phone]

Market Abuse Regulation (MAR) Disclosure

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

About DeepVerge plc (www.deepverge.com)

DeepVerge is an environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins; Utilising artificial intelligent data analytics to scientifically prove the impact of skincare product claims on skin

About Abingdon Health (www.abingdonhealth.com)

Abingdon Health is a world leading developer and manufacturer of high-quality rapid tests across all industry sectors, including healthcare and COVID-19. Abingdon is the partner of choice for a growing global customer base and takes projects from initial concept through to routine and large-scale manufacturing and has also developed and marketed its own labelled tests.

The Company offers product development, regulatory support, technology transfer and manufacturing services for customers looking to develop new assays or transfer existing laboratory-based assays to a lateral flow format.  Abingdon Health aims to support the increase in need for rapid results across many industries and locations and produces lateral flow tests in areas such as infectious disease, clinical testing including companion diagnostics, animal health and environmental testing. Faster access to results allows for rapid decision making, targeted intervention and can support better outcomes. This ability has a significant role to play in improving life across the world. To support this aim Abingdon Health has also developed AppDx®, a customisable image capturing technology that transforms a smartphone into a self-sufficient, standalone lateral-flow reader.

Founded in 2008, Abingdon Health is headquartered in York, England.

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[i] https://www.mordorintelligence.com/industry-reports/water-testing-market

[ii] https://www.waterworld.com/drinking-water/treatment/press-release/14203633/epa-adds-new-pfas-to-its-drinking-water-treatability-database

[iii] https://norden.diva-portal.org/smash/record.jsf?pid=diva2%3A1295959&dswid=-5995

[iv] https://www.waterworld.com/drinking-water/treatment/press-release/14203633/epa-adds-new-pfas-to-its-drinking-water-treatability-database

 

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