Abingdon Health PLC (AIM:ABDX) signed a contract with a European customer for the manufacture of lateral flow device components for a COVID-19 antigen test.
According to a statement, the contract is for an initial 12-month period with an option to extend, and will initially be worth a minimum of £2.7mln in the first year.
Currently, the London-listed company will only manufacture the biochemical-sprayed nitrocellulose component of the lateral flow device, but there is an option to expand that to other components.
Abingdon also said all raw materials required will be provided by the customer and that the “initial technical transfer process”, which should take two months, will also be paid for by the customer.
“The contract highlights the strengths of Abingdon’s flexibility in being able to offer a range of first-class contract services across primary and secondary production,” said chief executive Chris Yates.
The company added that it continues to make commercial progress in other areas.