Benzinga | Mar 4, 2021 07:04AM EST

Genetic Technologies Signs Multi-Year US Distribution Agreement With Infinity BiologiX for COVID Risk Test

* Initial three-year co-exclusive licence agreement between IBX and GTG for the production, distribution, sales and marketing of GTG's COVID-19 Risk Test in the US, under the 'powered by GeneType' branding

* IBX is required to make minimum payments to GTG totaling US$2.9 million over the term to maintain exclusivity with an initial upfront payment of US$50k followed by minimum payments totaling US$850k in the first year and US$1.0 million in each of the second and third years1

* IBX may terminate this agreement at any time and for any reason upon 60 days written notice to GTG with effect upon the expiry of the 60-day period

* IBX currently has the capacity to process over 100,000 COVID-19 Risk Tests per day across its two major labs and is well-positioned with an existing network of SARS-CoV-2 testing partners and associated medical practitioners across the US to be able to use GTG's COVID-19 Risk Test in conjunction with these existing third-party SARS-CoV-2 Tests

* Underlying royalty structure is on a per unit basis of US$10

* IBX will define and decide the sales and end-to-consumer pricing structure for the COVID-19 Risk Test