Virax Biolabs Announces Extension of Existing Exclusive Distribution Agreement to Market Mpox (formerly Monkeypox) Virus Real-Time PCR Detection Kits with Cosmos Health Inc.

Rhea-AI Summary

Virax Biolabs Group (NASDAQ: VRAX) has extended its exclusive distribution agreement with Cosmos Health Inc. (Nasdaq: COSM) to market Mpox Virus Real-Time PCR Detection Kits in Gulf Cooperation Council (GCC) countries. This expansion follows their existing agreement for Greece, Cyprus, and non-exclusive distribution in Europe. The CE-marked and MHRA-authorized kits boast a 96.7% sensitivity and 93.72% specificity, delivering results in under 70 minutes.

The agreement allows Cosmos to import, sell, and distribute Virax-branded Mpox virus Nucleic Acid Detection Kits in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Both companies express excitement about the partnership, with Virax CEO James Foster highlighting the expanded geographic reach and Cosmos CEO Greg Siokas noting the continued strong demand for Mpox virus detection kits.

Positive

• Expansion of exclusive distribution agreement to GCC countries
• High sensitivity (96.7%) and specificity (93.72%) of Mpox detection kits
• Quick results delivery in under 70 minutes
• CE-marked for sale in Europe and MHRA-authorized for the UK

Negative

• None.

Insights

Medical Research Analyst

The extension of Virax Biolabs' distribution agreement with Cosmos Health for Mpox virus detection kits in GCC countries is a strategic move, but its immediate impact may be While the 96.7% sensitivity and 93.72% specificity of the RT-PCR kits are impressive, the global Mpox situation has significantly improved since its peak in 2022. The 70-minute result time is competitive, but not groundbreaking.

The CE mark and MHRA authorization lend credibility, but market demand in GCC countries remains uncertain. This expansion could provide a modest revenue stream for Virax, yet it's unlikely to be a major growth driver given the current epidemiological landscape. Investors should monitor how this fits into Virax's broader strategy for infectious disease diagnostics.

Market Research Analyst

The exclusive distribution agreement extension into GCC countries represents a calculated expansion for Virax Biolabs. However, the market potential for Mpox detection kits in this region is questionable. While diversifying geographically is generally positive, the timing may be off given the global decline in Mpox cases.

Cosmos Health's "strong demand" claim should be viewed cautiously without supporting data. The real value of this deal might lie in establishing a distribution framework for future products rather than immediate Mpox kit sales. Investors should look for information on minimum order quantities or revenue projections to better assess the agreement's financial impact on Virax.

LONDON, Sept. 16, 2024 /PRNewswire/ -- Virax Biolabs Group Limited (NASDAQ: VRAX) ("Virax" or the "Company"), an innovative biotechnology company focused on the detection of immune responses and diagnosis of viral diseases, today announced that it has entered into an extension of its already existing exclusive distribution agreement with Cosmos Health Inc. (Nasdaq: COSM) ("Cosmos") to commercialize Mpox Virus Real-Time PCR Detection Kits in countries in the Gulf Cooperation Council ("GCC"). It had previously signed an agreement for exclusive distribution in Greece & Cyrprus and non-exclusive distribution throughout Europe.

The RT PCR Mpox virus detection kits are CE-marked for sale in Europe and also authorized by the Medicines and Healthcare products Regulatory Agency (MHRA), the product regulatory agency for the United Kingdom. These tests perform with a sensitivity of 96.7% and specificity of 93.72%, with the ability to deliver results in under 70 minutes.

"We are excited to strengthen our partnership with Cosmos. This exclusive agreement expands our geographic reach, providing a wider network of healthcare professionals with essential tools to diagnose and manage the spread of the Mpox virus," James Foster, CEO of Virax Biolabs. "We look forward to working closely with Cosmos and leveraging its impressive distribution infrastructure."

"We are happy to further partner with Virax Biolabs as the Company works diligently to mitigate the spread of Mpox and other infectious diseases," commented Greg Siokas, Chief Executive Officer of Cosmos. "We continue to see strong demand for Mpox virus detection kits, and we believe that we are well positioned to support Virax and territories in need."

Under the terms of the agreement, Cosmos is authorized to import, sell and distribute Virax-branded Mpox virus Nucleic Acid Detection Kits in the GCC including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

About Virax Biolabs Group Limited

Virax Biolabs Group Limited is an innovative biotechnology company focused on the detection of immune responses to and diagnosis of viral diseases. Virax Biolabs Group Limited is currently developing T-Cell-based test technologies with the intention of providing an immunology profiling platform. T-Cell testing can be particularly effective in the diagnosis and therapeutics of post-viral syndromes such as Long COVID and other chronic conditions linked to immune dysregulation.

For more information, please visit www.viraxbiolabs.com.

About Cosmos Health Inc.

Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe® and C-Sept®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.zipdoctor.co, as well as LinkedIn and X.

Investor Relations Contact:
Russo Partners, LLC 
Nic Johnson and Adanna G. Alexander, Ph.D. 
M: 303-482-6405 
nic.johnson@russopartnersllc.com 

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SOURCE Virax Biolabs

FAQ

What is the new distribution agreement between Virax Biolabs (VRAX) and Cosmos Health for Mpox detection kits?

Virax Biolabs (VRAX) has extended its exclusive distribution agreement with Cosmos Health to market Mpox Virus Real-Time PCR Detection Kits in Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

What are the performance characteristics of Virax Biolabs' (VRAX) Mpox detection kits?

Virax Biolabs' (VRAX) Mpox Virus Real-Time PCR Detection Kits have a sensitivity of 96.7% and specificity of 93.72%, with the ability to deliver results in under 70 minutes.

Where are Virax Biolabs' (VRAX) Mpox detection kits authorized for use?

Virax Biolabs' (VRAX) Mpox detection kits are CE-marked for sale in Europe and authorized by the Medicines and Healthcare products Regulatory Agency (MHRA) for use in the United Kingdom.

What is the significance of Virax Biolabs' (VRAX) expanded distribution agreement with Cosmos Health?

The expanded agreement allows Virax Biolabs (VRAX) to increase its geographic reach, providing a wider network of healthcare professionals with tools to diagnose and manage the spread of the Mpox virus in GCC countries, in addition to their existing distribution in Greece, Cyprus, and Europe.