Co-Diagnostics, Inc. (NASDAQ:CODX) announced on Monday that it has entered into a joint venture agreement with the Kingdom of Saudi Arabia (KSA) based Arabian Eagle Manufacturing.
The agreement aims to research, develop, manufacture, assemble, distribute, and commercialize Co-Dx technologies and intellectual property, including the company's upcoming Co-Dx PCR point-of-care platform in KSA and 18 other countries across the Middle East and North Africa regions.
The financial terms of the JV were not disclosed.
Co-Diagnostics is a molecular diagnostics company with a patented platform for the development of molecular diagnostic tests.
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Co-Diagnostics stated that its mission aligns with the key pillars of Saudi Vision 2030, supporting technology localization, industrial diversification, and healthcare innovation. The new venture engages in research, development, manufacturing, assembly, distribution, and commercialization of Co-Dx products.
The company said that its partner believes that initially pursuing regulatory clearance with the Saudi Food & Drug Administration will directly facilitate entry into many other countries in the Territory.
Co-Diagnostics CEO Dwight Egan commented, "We are pleased to announce this agreement to establish the relationship with Arabian Eagle, our valued partners in the Middle East, as we expand the reach of our exciting healthcare innovations into a region with a large and growing market for medical devices and point-of-care diagnostics. The KSA has published the key demand drivers that underpin that anticipated growth, and we believe that our cutting-edge PCR technology, along with the scope and mission of CoMira, addresses those drivers while reinforcing our resolve to close the accessibility gap between high-quality PCR diagnostics and those who need them."
As per the JV agreement, Arabian Eagle will contribute to local operational and customer support, lead the setup of the manufacturing facility and handle regulatory clearance/registration responsibilities, manage other logistics activities, and ensure local compliance.
Similar to the company's partnership in India with its existing JV, CoSara Diagnostics Pvt Ltd, Co-Dx will provide CoMira an exclusive license to use, manufacture, and commercialize the licensed IP, which will include the upcoming Co-Dx PCR platform as well as the company's existing suite of lab-based PCR diagnostic products.
Infectious disease tests on the new platform, currently in preparation to begin clinical evaluations before the end of 2025 in various jurisdictions, include tuberculosis, an 8-type HPV multiplex test, and an upper respiratory multiplex test for influenza A and B, COVID-19, and RSV.
Capital Raise
Last week, Co-Diagnostics entered into a Securities Purchase Agreement with institutional investors for a registered direct offering of its common stock, with a value of $10 million, to be made from time to time.
CODX Price Action: Co-Diagnostics shares were up 2.62% at $0.35 during premarket trading on Monday. The stock is near its 52-week low of $0.22, according to Benzinga Pro data.
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