This article is specifically focused on the success and potential of the Definitive Agreement between Therma Bright Inc on the TSX-V and Orpheus Medica a private Canadian Biotech firm. Together they plan to launch Covisafe. See below for the official presentation. This article will summarize key takeaways that will be referenced further on.
Therma and Orpheus
The current tools for covid testing are uncomfortable, expensive, and time consuming. Many of the covid testing to date requires lab confirmation. The proposal would be a palm sized saliva test kit with a 20 minute turnaround time. 99% sensitivity/accuracy and on the spot convenient Point-of-Care Kit. This model is clearly demonstrating a superior version of Nucleic Acid (i.e. PCR) and Antibody Testing.
Why Orpheus and how? - Referencing points from the the July 7th Press release will reveal their past experience and details on the plan.
"Orpheus has substantial experience developing rapid tests, including roadside THC drug screening kits for saliva and other biological samples."
"The project will integrate Orpheus' novel biologics platform, coupled with third party rapid detection and portable device technology, to develop a reliable palm-sized test for screening of COVID-19 virus in saliva”
Therma Bright Enters Into a Binding Letter of Intent with Orpheus Medica to Develop a Rapid Test to Detect COVID-19 Virus in Saliva
The director that stood out the most on the board is Spencer Huh. Mr Huh is experienced, connected and established in both Canada and South Korea.
"Mr. Huh worked with numerous private and publicly listed companies in Korea and Canada, including mining, medical device, and high-tech companies. He has played an integral role in the establishment, acquisitions, and financing for these companies."
What is the big deal with South Korea?
The goal would be to mass manufacture covid test kits in South Korea and export them around the world to capture a larger annualized wallet share which is estimated to be over 1B$USD+
Looking into the statistics of the industry. As of July 24, 2020, around 1.51 million coronavirus (COVID-19) tests were conducted in South Korea. South Korea succeeded in flattening the infection curve by rapidly conducting extensive tests immediately in the early stages. Exports of coronavirus (COVID-19) test kits exported from South Korea have increased significantly since the pandemic declaration and were worth around 131.3 million U.S. dollars in May 2020.
Spencer could be a key that could unlock the market share by a dozen folds. The leading destination for Korean test kits was Brazil, followed by the U.S. and Italy.
South Korea statistic reference
Individual manufacturers in South Korea have current production output of 300k test kits everyday and are expecting to increase over 1million daily kits by next month. If a partnership occurred between a single test kit producer that is committing to make 1mm Therma Bright swabs a day. $THRM would no longer be a microcap next year and in fact become the biggest Covid pick on the Toronto stock exchange.
Assuming the confidential third party to this agreement?
There are 2 options that have been discovered and could be related or separate. The first will be a reference taken from the user Smileforme on stockhouse indicating
"The third party which will be announced is Deep Biologics. Dea Shahinas is your link between it. She was a director as Orpheus Biologics and is the current CEO of Deep.Deep Biologics recieved the governement grants by the NRC and is being fast tracked. Here is some media exposureCanadian company developing palm-sized test to detect COVID-19 in 20 minutesSounds exactly like Covisafe right?"
Potentially correct or could be using the rights and research of another developer to gain the government grant and create the Canadian version of this device is also likely.
Upon looking into the Health Canada website for Testing devices for COVID-19: List of applications under evaluation - There was only 1 Nucleic Acid, Point of care test kit under review. Could Mr. Huh potentially be the connection between Orpheus Medica and Ahram Biosystems Inc? If the third party was Ahram Biosystems inc and it had nothing to do with Mr. Huh, he could still play a vital role in progressing the matter or maintaining a relationship. Again, if in fact Ahram Biosystems is the third party that could mean the proposed Covisafe would already have an approved test kit to accompany their saliva test.
Palm PCR CoVid-19 Fast Real-Time RT-PCR Kit by Ahram Biosystems Inc. (South Korea) - Nucleic Acid technology -Point of care test
Health Canada - Applications under evaluation
The future and the fight against Covid is Brighter than ever with Therma Bright Inc. I believe in the success of this company and the approval of the Tsx-v for their private placement to carry on with the business plan.
Disclosure: I am/we are long THRBF.