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Biolidics elaborates on scrapped deal with virus test kit distributor in the US
CATALIST-listed company Biolidics issued a statement on Friday to explain why its deal with Aytu Bioscience to distribute its novel conronavirus antibody test kits in the US has now been scrapped.
Biolidics said, in a statement responding to the Singapore Exchange's queries, that it has refunded all the deposits paid by Aytu for all undelivered orders, after the parties' mutual agreement to terminate the distribution agreement.
Biolidics had announced earlier this week that the decision came about amid increased competition for such kits.
It said Aytu had a binding commitment to purchase an initial 500,000 kits by April 24, and had placed an order and made a deposit for 500,100 kits.
By June 28, Biolidics had delivered 13,000 test kits to Aytu, which was to have been its sole distributor in the US. Biolidics has recorded revenue for these 13,000 kits.
Biolidics is not required to make any compensation, and is keeping mum on the quantum of the refund, citing commercial sensitivity as a reason.
Aytu will return the 13,000 test kits to Biolidics, but no refund to Aytu is required for these returned test kits. Biolidics said it intends to distribute these test kits to other markets outside the US.
The counter closed 0.5 cents up at S$0.32 on Friday, before the responses to SGX were made.