Penarth-based point-of-care firm EKF Diagnostics has secured a major order for its safe Covid-19 testing collection kits.
The firm, which is listed on the Alternative Investment, has signed a deal with Source BioScience for its sample collection device, PrimeStore MTM (molecular transport medium).
The kit's reagent deactivates viruses, bacteria, fungi and mycobacterium tuberculosis, so allowing safe sample handling and transport. As well as significantly reducing the risk of infection, it also removes the need for costly refrigeration.
In the case of Covid-19, by inactivating the virus, testing can now take place outside of containment facilities, so opening up capacity in more testing laboratories.
The Penarth company is expected to produce 12,500 sample collection tubes a day once normal production is established, with smaller early batch volumes expected to be shipped to Nottingham Source BioScience next month.
It has already created 12 jobs, but that is expected to growing as demand rises as more testing takes place across the 海角视频 for Covid-19.
While the Welsh Government no longer has a testing target, the 海角视频 Government is aiming to hit 100,000 a day by tomorrow.
EKF Diagnostics is a contract manufacturer for the device, owned by US firm Longhorn Vaccines and Diagnostics. It is the first time the product has been manufactured and distributed in the 海角视频.
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As demand increases, EKF also plans to produce the kits at its operations in Germany.
Penarth-born chief executive of EKF, Julian Baines, said: "We are delighted to supply Longhorn’s PrimeStore MTM collection kits to Source BioScience, a well-established provider of testing services to the NHS. These collection kits will ensure that Covid-19 samples can be handled and transported without expensive refrigeration or fear of contamination.
"This is a key part of the testing process to ensure that as a nation we can safely and rapidly increase our testing capacity. We will continue to ramp up our production capacity here in the 海角视频 and in Europe to serve the demand we expect to see, as testing moves closer to reaching the 海角视频 Government’s target of 100,000 tests a day.”
Jay LeCoque, chairman and chief of Source BioScience, said: “We are very encouraged with this partnership and significant development from EKF, which allows the removal of cold chain transportation, making logistics of samples less expensive and more available to the many hospitals and businesses needing to test key workers and staff regularly. This dramatically expands the reach of Covid-19 testing services to a larger population and will support a faster economic recovery.”
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In a brokers' note, N+1 Singer, said: "We continue to believe EKF is exceptionally well positioned in the current environment and can form a crucial part of the supply chain required to significantly increase diagnostic testing capacity, both in the 海角视频 and internationally.
"Our current year estimates are therefore a base case and are likely to be significantly upgraded in due course as further contracts are awarded and we get a clearer line of sight on the full year outturn.
"The direction of travel is clearly very positive. EKF remains one of our Best Ideas for 2020, supported by a positive short and medium term outlook, strong fundamentals and a track record of meeting and beating expectations."