Applied DNA Secures $1.0+ Million in COVID-19 Surveillance Testing Annualized Revenue, Builds Sales Pipeline for Test Kit and Testing-as-a-Service
– Announces Completion of Initial New York State Department of Health Inspection of Clinical Lab Subsidiary –
Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the “Company”), a leader in Polymerase Chain Reaction (PCR)-based DNA manufacturing that enables in vitro diagnostics, pre-clinical nucleic acid-based therapeutic drug candidates, supply chain security, anti-counterfeiting, and anti-theft technology, announced that Applied DNA Clinical Laboratories, LLC (“ADCL”), its wholly-owned subsidiary, has secured COVID-19 surveillance testing contracts under its testing-as-a-service (“TaaS”) offering that are estimated to generate more than $1.0 million in total annualized revenue beginning October 1, 2020. The Company’s surveillance testing revenue expectation is contingent on full-term participation by TaaS customers, including:
Private schools based in Long-Island, N.Y., including Harbor Country Day School. Education customers comprise the bulk of the Company’s current testing volume;
Several New York State-based small enterprises and private clients.
Unlike diagnostic testing, which looks for the occurrence of COVID-19 at the individual level, surveillance testing looks for infection within a defined population or community and can be used for making health management decisions at the population level. Surveillance testing does not require a prescription. In surveillance testing, pooled test results are returned to the sponsoring organization in the aggregate, not directly to the individual, and may be performed without CLIA certification.
Concurrently, the Company is executing on a sales and marketing strategy to build a pipeline of LineaTM COVID-19 Diagnostic Assay Kit (“Assay Kit”) and TaaS opportunities through:
Outreach to independent and hospital laboratories in COVID-19 hotspots nationally and regionally to offer an additional diagnostic kit supply line;
Outreach to local laboratories to construct a reference laboratory relationship for overflow testing;
Deployment of testing at Stony Brook University in accordance with a recently signed Master Services Agreement.
“Our capacity to perform COVID-19 surveillance testing is grounded in self-collection