Biomerica secures $1.75 million contract development agreement

Biomerica Inc. (NASDAQ: BMRA) announced it entered into a Master Services Agreement with an undisclosed life sciences company to develop in vitro diagnostic assays. The contract carries an initial development target fee of $1.75 million to be earned across multiple Statements of Work.

The agreement establishes a three-year term with automatic one-year renewals. Development work will be performed at Biomerica's FDA-licensed, ISO 13485-certified facility in Irvine, California. Revenue will be recognized on a milestone-completion basis as deliverables are accepted.

Biomerica was selected following a competitive evaluation process involving multiple contract development and manufacturing organization candidates. The company stated the work will utilize its existing team of research scientists and current equipment infrastructure.

"The $1.75 million in initial development fees provides near-term revenue visibility and demonstrates that the capabilities Biomerica has built over more than 40 years have direct commercial value beyond our own product pipeline," said Chief Executive Officer Zack Irani.

The company described the contract as leveraging the same ELISA-based assay development expertise used for its inFoods IBS technology platform. Biomerica stated that inFoods IBS remains its primary commercial priority and that the contract development work represents a parallel revenue stream.

The identity of the partner organization remains confidential pursuant to contractual obligations. Biomerica develops and manufactures diagnostic test systems and provides contract development services for the healthcare market.

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