Agreement with Boots for COVID-19 sample kits
06 April 2021
MyHealthChecked Plc (AIM: MHC), the consumer home-testing healthcare company, announces that it has entered into an agreement ("Agreement") via its subsidiary Concepta Diagnostics Limited with Boots UK Limited ("Boots"), the health and beauty retailer and pharmacy group, to launch the MyHealthChecked™ COVID-19 at-home nasal swab kit and PCR laboratory testing service via www.boots.com and across Boots stores in Great Britain.
The general testing and pre-travel service will be launched online at Boots shortly and will also be available at 507 Boots stores in England, Wales and Scotland from April.
The MyHealthChecked™ COVID-19 testing kit allows customers to take a nasal swab themselves at home and send samples safely and securely via the Royal Mail Tracked 24 service to be tested using established laboratory-based PCR detection methods. Testing is undertaken at the Manchester-based laboratories of MyHealthChecked and Yourgene Health plc (AIM: YGEN) and results are provided within 24-48 hours, via an online portal.
The Agreement has an initial term of 12 months from 6 April 2021, with a one-month notice period for termination thereafter. Boots will act as non-exclusive agent for MHC for sales of the testing kit, and will receive a commission on all sales made under the Agreement through Boots' sales channels.
The Agreement is expected to have a significant impact on the future performance of the MHC business and whilst volumes are unquantified at this stage, it is likely to result in substantial revenue growth in the current financial year ending 31 December 2021.
Agreement with Yourgene Health plc ("Yourgene")
In addition, the Company entered into an agreement ("Yourgene Agreement") with Yourgene to act as the Company's exclusive external provider of Testing Services. The Yourgene Agreement is not for a fixed period but is subject to a six-month notice clause. The minimum testing volume is 200 tests per week and 800 tests per calendar month for the first three months from the Testing Services start date. Product pricing for the agreement has been prepared on an arm's-length basis.
Adam Reynolds (Chairman) and Lyn Rees (Non-Executive Director) are both directors of Yourgene and hence entering into the Yourgene Agreement has been treated as a related party transaction under the AIM Rules for Companies ("AIM Rules"). Having consulted with SPARK Advisory Partners Limited, the Independent Directors (those directors other than Messrs Reynolds and Rees) consider that the terms of the agreement are fair and reasonable insofar as Shareholders are concerned.
MyHealthChecked™ offers the testing kits currently online via www.myhealthchecked.com, and is in talks with a number of other distribution channel partners.
Penny McCormick, Chief Executive Officer of MyHealthChecked Plc, said: "We are delighted to finalise this agreement with Boots which offers their customers a gold standard lab-based PCR testing service for COVID-19 with a sample collection kit that can be used at home. As the nation anticipates a potential ability to travel this year with less restrictions, we may see accurate COVID-19 PCR testing becoming a travel essential, and we have ensured a good capacity level to respond to market demand. A further area for customer consideration is the discomfort that can be involved with nasopharyngeal or throat swabs. Our service resolves this by using a gentle nasal swab that doesn't compromise the accuracy of the test, providing a more comfortable customer experience".
"It is also a testament to the service and our partners involved in the provision of these kits and the testing service itself that this deal concludes after months of careful due diligence by Boots. We know that the quality and accuracy of this service is second to none and this agreement is a highly credible endorsement of that."
Penny McCormick, Chief Executive Officer
via Walbrook PR
Maddy Kennedy, Chief Financial Officer
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About MyHealthChecked PLC (www.myhealthcheckedplc.com)
MyHealthChecked PLC, based in Cardiff, is an AIM-quoted pioneering UK healthcare company with two diverse, customer-facing at-home testing brands in its portfolio:
MyHealthChecked is the umbrella brand of a range of at-home DNA and RNA tests, now in development following the recent acquisition of The Genome Store. The tests will be made available online, and would be viable for over the counter purchase.
The MyHealthChecked portfolio has been identified as part of a change in mindset as customers become more familiar with the concept of accessible healthcare in the growing at home testing kit market with a focus on accessibility at the right price, led by UK-based experts.
Mylo targets the personalized mobile health market, with a primary focus on hormone testing and increasing a woman's chances of naturally getting pregnant, by enabling her to quantitively track her levels of luteinizing hormone (LH) prior to ovulation.
PCR: polymerase chain reaction