Rhinomed Limited reported that it has finalised an exclusive supply agreement with SureScreen Australia to supply Rhinoswabs and Rhinoswab Juniors for inclusion in SureScreen's class-leading range of lateral flow point of care test kits in the Australian, New Zealand, Singapore and South Pacific markets. The first product to market will be the ARTG registered SureScreen SARS-CoV-2 Antigen Rapid test Cassette Gold for children, which features Rhinomed's novel Rhinoswab Junior. This will be the first SARS-CoV-2 rapid antigen test kit designed specifically for children aged 4-12 on the Australian market.

Highlights: 24 month Rhinoswab and Rhinoswab Junior supply agreement with SureScreen Australia. Agreement on an exclusive basis for the Australia, New Zealand, Singapore and South Pacific region. Rhinomed to supply a minimum of 10 million swabs over a 2 year period.

SureScreen to include Rhinoswabs and Rhinoswab Juniors in its diagnostic tests for upper respiratory diseases including its SARS-Cov-2 tests, the in-development combined Influenza/SARS-CoV-2 tests and its pipeline of respiratory lateral flow tests being developed by SureScreen UK. Globally, children remain a critically vulnerable population group for SARS-Cov-2, yet the traumatic nature of swabbing with traditional nasal swabs leads to inconsistent testing. The Rhinoswab is a significantly easier, standardised and more comfortable way to collect a sample.

Its unique design ensures that anyone, anywhere can capture a valid sample. It standardises the sample collection process making it more predictable, reliable and consistent which is important to improving rapid antigen test outcomes. The inclusion of the Rhinoswab in this new rapid antigen test kit has the potential to substantially improve the process of testing children.

The supply agreement contains standard terms for an agreement of this nature and provides for a minimum commitment of 10 million Rhinomed swabs over a 24 month period with an option to renew. The agreement is exclusive in the Australian, New Zealand, Singapore and South Pacific region. Pricing remains commercial in confidence.

SureScreen has indicated it will commence ordering swabs for inclusion in test kits this month. Investors should note that this arrangement has the potential to represent in excess of 160%+ of H1FY22 revenues of $3.75m and maintenance of exclusivity is conditional upon meeting the agreed minimum volume.