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XPhyto: Why Rapid PCR Testing is Here to Stay

Marc Davis Marc Davis,
1 Comment| April 23, 2021

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Regular coronavirus testing is destined to become the norm for many years to come, regardless of how many people get vaccinated against COVID-19.

So says Hugh Rogers, the CEO of XPhyto Therapeutics Corp. (CSE: XPHY) (FSE: 4XT) (OTC: XPHYF), a Canadian life sciences company that recently co-developed in Germany one of the world’s fastest and most portable PCR test kits.

This is why his company is signing distribution deals in the EU’s largest marketplace. They include a well-known medical wholesaler whose customers include many pharmacies throughout Germany that views the coronavirus diagnostics marketplace as a burgeoning business that will not be made obsolete any time soon.

Rogers says, “It is almost certainly the case that COVID-19, its current variants, and variants that are yet to emerge, are endemic. The virus will be active in multiple parts of the world at any given time for many years to come.”

“Being that PCR testing is the only internationally-recognized standard for the diagnosis of coronaviruses such as COVID-19, it becomes apparent that PCR testing will be a sustainable business for a long time.”

Known as Covid-ID Lab, the PCR (molecular) test is now registered within the European Union as a commercial in vitro diagnostic (CE-IVD) test. This highly disruptive technological breakthrough was developed as a collaboration with Stuttgart-based 3a Diagnostics GmbH – a world-leader in developing disease-detecting medical innovations.

Successfully Launching Super-Fast, Portable PCR Testing

Rogers says his company says has recently assembled a “world-class” commercial sales team to capitalize on an unprecedented opportunity for his small start-up to become a serious player on the world diagnostics stage, starting with Germany and the rest of the EU.

This includes the recent addition of Manfred Buchberger. For nearly a decade, he ran a leading health care company in Austria and Germany – Greiner Bio-One GmbH, a medical products and diagnostics manufacturer that has annual revenues of around 600 million euros. He therefore benefits from considerable experience with diagnostic product launches.

His depth of experience in marketing new diagnostics products should help to open plenty of doors with big-league distributors and licensees, thereby helping to establish COVID-ID Lab as the “go-to” coronavirus diagnostics tool of choice in Germany.

To this end, XPhyto expects to announce more high-impact distribution and licensing deals with brand-name corporate partners in Germany in the coming months, according to Rogers. Especially considering that this technology has game-changing potential at pop-up testing centres, transportation hubs, border crossings, care facilities, schools, pharmacies, cruise ship terminals, and hospitality settings – particularly venues where space is at a premium and testing turnaround times need to be especially fast and reliable.

On this note, XPhyto is expected to offer more details in the coming days on its inaugural distribution deal, which involves a yet-to-be-named Germany pharmacy. This high-volume retailer of medical therapies makes for an ideal partner. Which is because Covid-ID Lab allows for PCR testing with considerably less equipment and training than with conventional PCR testing, allowing for point-of-care processing and results.

Rogers says, “We are working with the appropriate regulators to permit German pharmacies to run PCR tests at their retail locations, but most pharmacies do not have the space or staff for a full-scale automated lab on-site,” he says. “With our technology they have the prospect of running small satellite labs, which opens up 20,000-plus potential testing labs throughout Germany.”

Data from the Pharmaceutical Group of the European Union suggests that there are nearly 100,0000 pharmacies in the EU, which leaves a very large potential addressable market beyond Germany.

The Disruptive Appeal of Covid-ID Lab

It is easy to see why major companies are showing a keen interest in Covid-ID Lab. Its main competitive advantage is that it provides a definitive coronavirus test result in just 25 minutes. In so doing, it can reduce processing times from several hours or days to less than half an hour.

It essentially combines the accuracy of PCR with the speed of disposable screening tests, which represents a major innovation within this sector. Covid-ID Lab is highly reliable, easy-to-use, rapid, and convenient.

Ideally Covid-ID Lab could be used in a variety of settings as countries attempt to loosen restrictions while keeping the Covid-19 pandemic under control.

Why the Aviation Industry Needs COVID-ID Lab

Currently, most existing PCR technology is too slow to use at airports and other key travel hubs to process large numbers of people on an expedited basis. COVID-ID Lab could fill that gap in the market. As previously mentioned, it marries the accuracy of PCR with the speed of disposable screening tests, which should make it highly attractive to airlines.

Keep in mind that fast PCR testing of this kind may offer international travellers an alternative or complement to vaccines.

It could be a godsend to the airline industry. Consider this: global air traffic decreased by 65.9% year-on-year in 2020, according to the International Air Transport Association (IATC), which branded the situation “a catastrophe”.

Accordingly, the sector suffered an annual net loss of US $118.5 billion, and airlines will be desperate to avoid a similar fate this year and in 2022, and beyond.

Investment Summary

XPhyto is clearly in the early stages of a successful product launch – one that could have the disruptive effect of making rapid PCR testing available for use in a diversity of point-of-care settings.

By starting out with a distribution agreement with a leading German medical wholesaler (details are said to be coming soon), XPhyto is getting the kind of validation that bodes well for COVID-ID Lab’s commercial viability.

The company share price has responded favourably to this milestone development earlier this week. Plus, the advent of more licensing and distribution agreements anticipated in the coming months should help propel an ascendant share price trajectory – which could make XPhyto a stellar performer throughout the balance of 2021.

ABOUT THE AUTHOR: Marc Davis has a deep background in the capital markets spanning 30 years, having mostly worked as an analyst and stock market commentator. He is also a longstanding financial journalist. Over the years, his articles have appeared in dozens of digital publications worldwide. They include USA Today, CBS Money Watch, The Times (UK), Investors’ Business Daily, the Financial Post, Reuters, National Post, Google News, Barron’s, China Daily, Huffington Post, AOL, City A.M. (London), Bloomberg, (Germany) and the Independent (UK). He has also appeared in business interviews on the BBC, CBC, and SKY TV.

Marc is also an enthusiastic investor in XPhyto Therapeutics and his commentary is not intended to be a solicitation for other investors to purchase this stock. Investors are always advised to consult an investment advisor before making investment decisions.

FULL DISCLOSURE: XPhyto Therapeutics Corp. is a client ofStockhouse Publishing.

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