Abingdon Health plc (AIM:ABDX), a manufacturer of rapid tests, announced on Tuesday that it has signed a "significant contract" with a European customer for the manufacture of lateral flow device (LFD) components for a COVID-19 antigen test.

The contract has an initial term of 12 months with an option to extend. It will commence with the primary production of the key biochemical-sprayed nitrocellulose component of the LFD. There is also an option to expand to other aspects of device manufacture including production and lamination of other membrane components and ultimately production of complete foiled devices, Abingdon Health said.

Based on minimum specified monthly order quantities and pricing at current GBP/USD exchange rates, the initial phase of the contract is worth a minimum of GBP2.7m for the first year.

All raw materials required for production will be provided by the customer. There will also be an initial technical transfer process, paid for by the customer, which is anticipated to take approximately two months.

(USD1=GBP0.80)