Allarity Therapeutics (NASDAQ: ALLR) has announced its first revenue-generating contract under its newly established Clinical Laboratory Improvement Amendments (CLIA)-certified laboratory services strategy, which is expected to complement revenue already generated through its standard gene expression and drug response (DRP) services.
Under the agreement, Allarity will provide a European biotechnology company with development, validation and related laboratory services to support implementation of a proprietary precision oncology predictive device for use in the U.S. According to Allarity, successful completion of the program could lead to ongoing commercial testing and CLIA-related service revenues.
In a statement, Thomas Jensen, CEO of Allarity, commented, “This agreement moves our newly established CLIA laboratory services strategy into commercial execution, building on our existing gene expression and DRP services business. For shareholders, the opportunity is to generate additional value from capabilities we have already built while maintaining stenoparib as our top development priority.”
The company stated that it obtained a Certificate of Registration under the CLIA for its Hørsholm laboratory, in part to enable it to perform biomarker testing internally in support of the continued clinical development of stenoparib and its DRP companion diagnostic strategy.
Allarity also identified the opportunity to offer its CLIA-certified laboratory capabilities to other biotechnology and pharmaceutical companies, particularly European drug developers seeking laboratory support for precision oncology programs intended for U.S. clinical development or commercialization. This first commercial agreement provides an initial foundation for pursuing that broader service opportunity.
