Proven and published
Pharmaceutical development customers have publically stated the superior technical performance of our products.
Our tests significantly decrease the total cost of delivery for drug development programs and diagnostics testing laboratories by markedly reducing the tests and labor involved.
In addition to the benefits of our patented multiplexing, we also sell high throughput automated systems on which our customers run the tests.
Our value proposition is consistent across our target markets. We provide state-of-the-art platforms which utilize custom-built test kits to reduce the amount of human labour required while delivering superior assay performance. We do this through “multiplexing” and automation.
Since developing custom tests for pharmaceutical and biotechnology drug developers, clinical research organizations, and diagnostic customers, SQI has created a broad range of applications of its multiplexing technology. SQI has quickly moved from being a new entrant in the market and has advanced to the point of developing customers within big pharma for testing SQI immunogenicity diagnostic testing products and development services.
We expect to add further customers in the quarters to come and to place and sell more platforms in order to build a solid foundation for future growth from kit sales. This also includes Contract Research Organizations (“CRO”) service-based revenue earned from running tests for customers at our facilities based on the multiplexed tests developed. The CRO revenue represents the combination of kit sales and the service revenues from running tests and generating data for pre-clinical studies. In addition to the successful commercialization in the Life Science Research market, we have had positive outcomes in the multiplexing of existing traditional singleplex tests in the animal health sector.
As we continue to commercialize our multiplexing platforms and kits, we are engaging more pharmaceutical clients and ramping up revenues from platform placements, development revenue, and kit sales.
The next step with our customers is to establish SQI platforms at their laboratories for final evaluation, which once achieved will lead to our ultimate objective of selling them significant volumes of customized kits for their on-going testing needs. We would estimate that each platform would generate between $1 and $2 million of revenue per year from kit sales and that the larger customers could acquire several platforms as we broaden the application of our technology.
There are 112 drugs being developed by customers who have signed a Master Service Agreement with SQI Diagnostics. We estimate that the market for multiplexed testing by North American and European pharmaceutical companies is approximately $2.0 billion. In the U.S. alone, there are almost 1,000 biologic drugs under development.
We continue to develop in vitro diagnostic tests targeting testing labs. We estimate that our products could reduce their labor costs by as much as 40%. There are 1,000 such labs in the U.S.
Financial statements and analysis
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Consolidated Financial Statement
Management Discussion & Analysis