- November 08, 2010
STONY BROOK, NY | Applied DNA Sciences announced that under the terms of a five-year agreement with an exclusive European luxury brand, APDN would receive a minimum of $8.7 million for supplying the company with proprietary botanical DNA Authentication codes custom-made for the brand-owner's customers, in order to maintain exclusivity on the agreement in the specified field.
Unique botanical DNA Authentication codes will be used to mark luxury products and link them to specific owners. On signing of the agreement, APDN received purchase orders for multiple botanical DNA Authentication codes. These purchase orders have already been filled, with repeat orders shipped back to the client. The company expects to receive approximately $1 million in orders in calendar 2011. Orders are expected to ramp up annually thereafter. While this agreement has been disclosed previously, the company has decided to release certain financial terms at this time, now that its client's products have reached the market.
As part of this agreement, APDN will receive a fee for each unique Authentication code purchased, with additional fees paid to APDN for authentications. In exchange for exclusive rights in the specified field, the brand-owner has agreed to minimum-volume purchases for each year of the agreement.