Media Release: Bluechiip Signs Watershed $15.9 Million Three-Year Deal
- New three-year supply deal signed with Labcon
- Deal adds to existing Development and Supply Agreement with Labcon
- A$5.8m (US$4.2m) two-year purchase order for chips, readers, software and engineering services
- A$10.1m (US$7.4m) agreed purchase order minimum for third year
- Extendable to a fourth and fifth year with minimums to be agreed
Bluechiip Limited (ASX: BCT) (Bluechiip), a leader in the development of sample-tracking technology for harsh environments, is pleased to announce the signing of a three-year A$15.9 million (US$11.6 million) deal to supply the Company’s chips and associated hardware and services to vial manufacturer, Labcon North America (Labcon).
Bluechiip announcing it had signed a major supply agreement with Labcon on 10 April 2017 with Labcon commencing production in 2017 of its Coldpoint™ Bluechiip-enabled range for the global vial market, including cryovials, boxes, readers and software. Bluechiip announced on 5 December 2017 the receipt of orders to supply Labcon with $1 million of chips, readers, software and services, to address markets in the Life Sciences sector, including cryogenics, drug screening, cell therapy and forensics. Bluechiip has delivered chips to Labcon each month with over 290,000 chips delivered since December 2017.
This new agreement extends and modifies the existing Development and Supply Agreement between Bluechiip and Labcon to a three-year term.
Labcon has agreed to order A$5.8 million (US$4.2 million) of chips, readers, software and engineering services over a two-year period. This is expected to be A$1.5 million (US$1.1 million) in year one, and A$4.3 million (US$3.1 million) in year two. An additional minimum A$10.1 million ($US7.4 million) of products and services will be ordered and supplied in the third year with an additional two-year term to be negotiated as the supply agreement progresses.
Andrew McLellan, Managing Director of Bluechiip, said:
“This is an extremely exciting announcement for us because it represents our largest ever order. Importantly, it extends our strong and historic partnership with Labcon North America, which has been a loyal and important customer of ours for several years.
“The agreement will help us build scale as the orders increase over the three years.
“The updated supply agreement and is also significant for Bluechiip as it will allow the Company to launch into adjacent markets.”
Labcon North America, one of Bluechiip’s Original Equipment Manufacturer (OEM) partners, is the world’s leading manufacturer of ‘Earth-Friendly’ laboratory consumables, last year moulding over 1.4 billion products including centrifuge tubes, pipette tips, microbiology disposables, organisation tools, and a wide range of OEM/specialty items, for major companies in the Life Sciences sector.
Jim Happ, President of Labcon North America, said:
“Bluechiip’s unique tracking technology has allowed us to bring differentiated products into the market. Today’s announcement represents a large opportunity for us. We are delighted to have gained a first-mover advantage in the Cryogenic Vial market, where the harsh environment severely compromises existing tracking technologies.
“Our partnership with Bluechiip continues to evolve and progress and we are very excited about a strong future which will see our two teams working closely together.”
Under the agreement Bluechiip will extend a preferred moratorium to Labcon for its Coldpoint™ Bluechiip-enabled range. The moratorium will mean that Bluechiip will not engage new OEM partners that compete against Labcon’s Bluechiip-enabled products, including its cryogenic vial range. The moratorium does not include existing OEM partnership agreements that Bluechiip has, including with Genea Biomedx and Planet Innovation, and does not restrict Bluechiip from selling integrated products through its own distribution channels.
About Labcon North America
Labcon North America is the world’s leading producer of low carbon laboratory disposables and was the first to market bioplastics for laboratories. Labcon’s focus on sustainable solutions for laboratories dates to 1994 with the first low carbon products. A UL-Certified ISO 9001:2008 company; Labcon North America is headquartered in the San Francisco Bay area.
About Bluechiip Limited
Bluechiip has developed a wireless tracking solution for the healthcare and life science, security, defence and manufacturing industries which represents a generational change from current methods such as labels (hand-written and pre-printed), barcodes (linear and 2D) and microelectronic integrated circuit (IC)-based RFID (Radio Frequency Identification). The unique tag is based on MEMS technology and contains no electronics. The tag can either be embedded or manufactured into a storage product, such as vials or bags. Easy identification, along with any associated information from the tag such as temperature can be detected by a reader, which can also sense the temperature of the tagged items. The traditional identification technologies have significant limitations. Whereas a barcode requires a visible tag or line-of-sight optical scan, Bluechiip® technology does not. Unlike labels, barcodes and RFID, the Bluechiip® technology can sense the temperature of each item a tag is attached to, or embedded in.
The Bluechiip® technology has initial applications in the healthcare industry particularly those businesses which require cryogenic storage facilities (biobanks and biorepositories). Bluechiip® offers the only technology that enables accurate and reliable tracking of products including stem cells, cord blood, and other biospecimens. In addition to functioning in extreme temperatures, the Bluechiip® tracking solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.
The Bluechiip® technology has other healthcare applications in pathology, clinical trials and forensics. Several other key markets outside of healthcare include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.
Further information is available at www.bluechiip.com
For further information please contact:
Rod North, Managing Director,
Bourse Communications Pty Ltd
T: +613 9510 8309, M: +61 408 670 706,