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  • 29 October 2021 14:46

Dotz confirms US$2.3m orders on track

Dotz Nano (ASX:DTZ) shares increased 5 per cent today after an activity update to the ASX outlining two purchase orders for US$2.3 million for its SARS-CoV-2 virus detection technology and multi-country distribution agreements to be delivered in the next two years.

Dotz secured two purchase orders for its SARS-CoV-2 virus detection technology and entered into distribution agreements covering the UAE, Egypt, Sudan and Paraguay. Manufacturing of the Dotz Test Kits commenced during the quarter, enabling the first shipments to fulfill these orders.

Dotz received an initial US$220,000 purchase order and entered into a distribution agreement for Paraguay with leading medical solutions supplier El Alamo S.A. The two-year distribution agreement enables El Alamo to exclusively promote, sell and distribute the Dotz Test Kits in Paraguay subject to minimum annual purchase orders of approximately US$200,000 in 2021 and at least US$420,000 in each of 2022 and 2023 being met.

El Alamo has more than 20 years’ experience importing, packaging and distributing international medical products in Paraguay and is the exclusive distributor of medical brands Radiometer, Ortho and Spinreact. Dotz will ship its first order to El Alamo in Q4 FY21.

The agreement with El Alamo followed a US$2.1 million purchase order and multi-country distribution agreement with UAE-based Hygiene Links International General Trading LLC in July. The two-year distribution agreement provides Hygiene Links with the exclusive right to sell the Dotz Test Kits in the UAE, Egypt and Sudan, subject to minimum purchase orders of 50,000 units per month for each country being met.

The US$2.1 million purchase order is for a six-month supply of the Dotz Test Kits. In order to ensure the Test Kits are of the highest quality, Dotz delayed the initial delivery with the first Test Kits now being shipped during October and November 2021. the purchase order is now expected to be delivered over the next 12 months. Hygiene Links is a leading chemical, plastics and consumables manufacturer and distributor across the Middle East with a large customer base within the healthcare sector.

Dotz’s nasopharyngeal swab and saliva-based Test Kits have received CE Mark authorisation, which clears the product for sale in most European countries, and Certificate of Free Sale for Paraguay. In April 2021, Dotz applied for FDA Emergency Use Authorisation for its nasopharyngeal swab Test Kits and in May 2021 updated the application to also cover Dotz’s saliva-based Test Kits. Dotz is currently in the process of supplying further information to the FDA to comply with changes in the EUA updates.

Dotz CEO Gideon Shmuel said, “Our end-to-end diagnostic technology is a highly accurate, cost-effective and timely SARS-CoV-2 virus testing solution suitable for use in the field and the lab. This capability provides us with a large, global addressable market spanning everything from healthcare operators, airports, travel providers, educators, event facilities and other similar organisations. We have commenced manufacturing and fulfilling initial orders and are in active discussions with potential customers in other markets.

“Dotz has successfully developed and commercialised a SARS-CoV-2 virus detection technology within a year. It demonstrates the versatility of our technology and provides a significant long-term growth opportunity for the business. We remain focused on securing new orders and scaling production in this domain alongside our progress in the authentication and traceability solutions.”

The company said it will continue to focus on converting its strong pipeline of opportunities to sales. Negotiations with potential customers are well advanced within the diagnostic and authentication sectors while ongoing product and customisation testing provides longer-term revenue opportunities.

Mr Shmuel said, “While we are continuing discussions with organisations and governments in several jurisdictions for our diagnostic technology, we are not neglecting the broader authentication and traceability sector where we have a unique end-to-end product offering and large market opportunity. Product authentication is quickly moving from a nice-to-have to a must-have for manufacturers, particularly as industries look to protect their brand and improve the traceability and sustainability of their supply chains as part of their ESG commitments. We have numerous authentication projects underway and remain confident that many of these will convert to long-term contracts.”

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