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Shares of consumer home-testing healthcare company MyHealthChecked Plc (LON: MHC) jumped on Tuesday after the company said it entered into an agreement via its subsidiary, Concepta Diagnostics Limited, with Boots UK, to launch the MyHealthChecked COVID-19 at-home nasal swab kit and PCR laboratory testing service.
The announcement comes after the UK Government said free Covid-19 home test kits will be available twice weekly to all in England.
The general testing and pre-travel service will be launched online at Boots shortly, the company said, while it will also be available at 507 Boots stores in England, Wales and Scotland from April.
The MHC testing kit allows customers to take a nasal swab at home and send samples via the Royal Mail Tracked 24 service to be tested, with results provided within 24-48 hours.
MHC said the deal has an initial term of 12 months from 6 April 2021, with a one-month notice period for termination after that. Boots will act as a non-exclusive agent for MHC for sales of the testing kit and receive a commission on all sales made under the agreement.
They expect the deal to significantly impact their future performance, and although volumes are not currently specified, it is likely to result in “substantial” revenue growth for MHC.
In addition, MHC said they have entered into an agreement with Yourgene Health plc to act as the company’s exclusive external provider of testing services.
The minimum testing volume is 200 tests per week and 800 tests per calendar month for the first three months from the start date.
Penny McCormick, CEO of MyHealthChecked Plc, commented: “We are delighted to finalise this agreement with Boots which offers their customers a gold standard lab-based PCR testing service for COVID-19 with a sample collection kit that can be used at home.
“As the nation anticipates a potential ability to travel this year with less restrictions, we may see accurate COVID-19 PCR testing becoming a travel essential, and we have ensured a good capacity level to respond to market demand.”
Heading into the close on Tuesday, MHC’s share price is up 25.27% at 5.88p. YourGene shares have risen 1.93% on the day to 14.50p.
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