ASX-listed life sciences company eSense-Lab has signed an exclusive deal with US-based distributor Blue Science Solutions to sell its terpenes-based sanitiser products.
The move comes after eSense-Lab announced in May it was moving into the hand sanitiser market to cash in on demand fuelled by the COVID-19 pandemic.
Blue Science has committed to minimum US sales of A$3m in the first 12 months of the agreement in order to maintain exclusivity, with a combined $10m in sales over five years assuming it is renewed after year one.
The agreement covers all terpenes-based cleaning and disinfectant products developed by eSense-Lab, with Blue Science receiving an arm’s length commission on sales.
eSense-Lab said it is still finalising product formulations, with a terpenes-based sanitiser expected to be ready for manufacture in the next four to six months.
While warning investors sales projections are targets not forecasts, the company said Blue Science has expressed confidence in achieving them via its established supply chain network.
The deal also gives eSense-Lab access to a team of scientists to develop commercially viable products.
Shares were up 0.014 to 0.034 on the ASX at the time of writing.