Shares of Wetherby-based diagnostics company Avacta Group plc fell about 12% on Monday despite the firm announcing it entered into a non-exclusive distribution agreement with Calibre Scientific Inc. for Avacta’s AffiDX SARS-CoV-2 antigen lateral flow test for professional use in the UK and European Economic Area (EEA).

Some investors seemed disappointed the distribution agreement does not guarantee any earnings for Avacta since it still has to sell its Covid-19 tests once they are listed on Calibre’s website.

“The non-exclusive distribution agreement for Avacta’s AffiDX SARS-CoV-2 antigen lateral flow test for professional use covers the UK and EEA,” said Avacta.

“The test will be listed on Calibre’s web site and available to be purchased by professional users.”

Avacta Group CEO Alastair Smith said: “We are delighted that we have put in place this distribution agreement for the AffiDX SARS-CoV-2 antigen lateral flow test for professional use with Calibre.

“As a high quality, global distributor of diagnostics and life science products with excellent links to our target markets, we are confident Calibre is well placed to support our penetration of the professional end use market in the UK and EEA.

“Avacta will continue to focus on developing direct sales opportunities to major corporates and other large scale end users.

“We are also in discussion with potential customers in territories outside the UK and EEA, including some of the APAC region, where the additional regulatory approvals required beyond CE marking are minimal.

“Lateral flow tests have a crucial role to play in helping societies and the global economy return to normal and Avacta’s AffiDX antigen test, developed in the UK and based on UK technology is well placed to play a significant role in this process.

“I look forward to updating the market on progress over the coming months.”