Agreement Highlights Growth Opportunity for Company’s Proprietary DNA Production Technology
STONY BROOK, NY. April 20, 2017 – Applied DNA Sciences, Inc. (“Applied DNA or the Company,” NASDAQ: APDN), a provider of DNA-based supply chain, anti-counterfeiting and anti-theft technology, product genotyping and product authentication solutions, announced that it has entered into an agreement to supply bulk DNA for a leading chemicals company serving the in vitro diagnostics market. The agreement is for five years with quarterly shipments and includes optional three-year renewals thereafter. The Company expects the agreement to generate annual revenues of approximately $500,000 beginning in FY 2018 with a pro-rated amount expected in FQ4:17.
Applied DNA’s manufacturing technology enables very-large-scale production of DNA using proprietary polymerase chain reaction (PCR) methods. The technology, acquired with the company’s purchase of the assets of Vandalia Research Inc., in 2015, enables custom DNA sequences to be produced in large scale, quicker and cleaner when compared to culture methods of production. Applications for DNA manufactured using Applied DNA’s methods include vaccines, diagnostics, reagents, bio-agriculture, and gene therapies for existing and emerging markets.
“The ability to offer PCR-based DNA production that is more efficient and cost-effective is unique and a significant competitive advantage in the marketplace relative to other DNA production methods,” said Dr. James A. Hayward, president and CEO of Applied DNA. “This long-term supply agreement reflects efforts being made to cross-sell our cutting-edge capabilities to both existing and prospective pharmaceutical and diagnostics customers, opportunities that we believe hold the potential to yield similar, long-term, recurring order-flow. Together with an increasing number of in-bound inquiries from prospective customers that recognize the benefits of PCR-produced DNA in their product, we believe this business should see growth going forward.”