Authentication company Dotz Nano (ASX:DTZ) has signed a distribution agreement and received a US$220,000 purchase order from Paraguay-based El Alamo S.A for its SARS-CoV-2 virus detection technology.
El Alamo is a leading supplier of medical solutions and technologies in Paraguay and has more than two decades’ experience importing, packaging, and distributing international medical products in the country. It is the exclusive distributor in Paraguay of medical brands Radiometer, Ortho and Spinreact.
The two-year distribution agreement grants El Alamo the right to promote, sell and distribute the Dotz Test Kits in Paraguay with conditional exclusivity provided minimum annual purchase orders equating to approximately US$200,000 in 2021 and at least US$420,000 in each of 2022 and 2023 are met. The agreement provides for automatic renewal for additional one-year periods on a non-exclusive basis.
Under the agreement, Dotz will receive payment of US$80,000 prior to delivery with the balance subject to customer demand. Subsequent orders require 50% paid upfront and the remaining 50% prior to delivery.
El Alamo is Dotz’s second distributor for its SARS-CoV-2 virus detection technology, following a recent agreement with UAE-based Hygiene Links for Egypt, Sudan and the UAE.
Dotz has obtained CE Mark authorisation and a Certificate of Free Sale (CFS) for Paraguay for both its nasopharyngeal swab and saliva-based Dotz Test Kits, which clears the product for sale in the European Union and to the private sector in Paraguay. There are additional regulatory requirements for El Alamo to sell the Dotz Test Kits to the public sector in Paraguay, including registration and validation by the local authorities. Dotz has also applied for a US FDA Emergency Use Authorisation for its Test Kits, following a successful blind clinical trial on 73 subjects in the US.
Dotz Chairman Bernie Brookes said, “In line with our long-term growth strategy, we continue to commercialise our SARS-CoV-2 virus detection technology. Our second distribution agreement within the diagnostic domain cost-effectively increases our global target market while providing public and private facilities with access to an effective and timely testing method.”