Toronto, OntarioMay 10, 2018SQI Diagnostics Inc. (“SQI Diagnostics” or the “Company”) (TSX-V: SQD; OTCQB: SQIDF),
a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics (“SQI”), and Microdrop LLC, a direct to consumer healthcare company focused on next generation digital and technology solutions that increase patient awareness to life-altering conditions, today announced a commercial agreement to serve the rapidly-growing direct-to-consumer healthcare diagnostic testing market valued at $173M (USD) in 2016 and that is predicted to grow to $350M by the year 2020 (Kalorama Information, January 2016).
The agreement includes, among other things, Microdrop licensing the rights to run SQI’s celiac and wheat allergy test, as well as SQI’s rheumatoid arthritis test in the direct to consumer market. Such rights are subject to standard performance obligations by both parties including a minimum number of kits to be purchased by Microdrop to maintain exclusivity; and that such minimum purchases grow over time. Microdrop now represents the 4th new SQI customers that brings a recurring revenue opportunity from diagnostic testing in the customer’s CLIA laboratory. The agreement also calls for Microdrop to purchase two sqidlite™ testing systems upon signing the agreement.
According to the University of Chicago Celiac Disease Center: “Celiac Disease affects at least 3 million Americans. It is the most common — and one of the most underdiagnosed –- hereditary autoimmune conditions in the United States today. The average length of time it takes for a symptomatic person to be diagnosed with celiac disease is the US is four years; this type of delay dramatically increases an individual’s risk of developing auto-immune disorders, neurological problems, osteoporosis and even cancer.” Leveraging Microdrop’s proprietary and highly sensitive platform, consumers will have the ability to remotely monitor or identify whether they have a condition, through a few drops of blood, and take actionable intervention with their healthcare provider.
The problem is no better with Rheumatoid Arthritis which afflicts 1% of the world’s population and where 1.3 million prescriptions will be written this year.
In the case of both diseases, SQI’s partnership with Microdrop will enable millions of patients and their physicians to get faster, easier diagnoses of their affliction. This, in turn, will accelerate access to treatment.
Following the launch and roll-out of these first two testing products over the next two quarters, the companies will work together to launch new tests for the rapidly growing direct-to-consumer market for other diseases.
About SQI Diagnostics
SQI Diagnostics is a life sciences and diagnostics company that develops and commercializes proprietary technologies and products for advanced microarray diagnostics. The Company’s proprietary microarray tests and fully-automated systems are designed to simplify protein and antibody testing workflow, increase throughput, reduce costs and provide excellent data quality. For more information, please visit www.sqidiagnostics.com. About Microdrop LLC Microdrop LLC is a direct to consumer healthcare company focused on next generation technology solutions that increase patient awareness to life-altering conditions through ultra-precise at-home monitoring products. For more information, please visit our website at www.microdrop.health
Sales and Marketing Contact:
Vice President, Global Commercial Operations
SQI Investor Relations Contacts:
Chief Executive Officer
416.674.9500 ext. 229
Vice President, Finance and Administration
416.674.9500 ext. 277
Microdrop LLC Contact:
Chief Executive Officer
This news release contains certain forward-looking statements, including, without limitation, statements containing the words “will”, “expects”, “intends” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to risks related to the failure to obtain necessary regulatory approvals, general economic and market segment conditions, and international risk and currency exchange, agreements and future agreements to sell our products, the success of our Diagnostic Tools and Services business and our intent to build near-term revenue streams from this business, the successful regulatory filing and receipt of regulatory approvals for our later stage quantitative diagnostic kits, the acceleration of our revenue ramp, general economic and market segment conditions, competitor activity, technology changes and regulatory approvals. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable laws.
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