- Indus Group Consumes Approximately 450 Million Pounds of Cotton Annually for the Manufacture of Apparel, Footwear, and Accessories for Global Brands and Retailers -
STONY BROOK, NY / ACCESSWIRE / July 25, 2024 / Applied DNA Sciences, Inc. (NASDAQ:APDN) ("Applied DNA" or the "Company"), a leader in PCR-based DNA technologies, today announced the signing of a five-year license and commercialization agreement for its CertainT® traceability platform (the "Agreement") with Indus Group ("Indus") a multinational apparel/textile manufacturing and sourcing company with a reputation for cutting-edge fabric technology and product innovation. Indus consumes approximately 450 million pounds of cotton annually. Financial terms of the Agreement were not disclosed.
CertainT is a textiles traceability platform that uses forensic, multiple-proof-point evidence to enable source and authenticity verification of materials and products at any point as they are transformed through global supply chains.
Under the terms of the Agreement, Applied DNA will supply Indus with its CertainT platform for non-home, cotton-based products (apparel, footwear, and accessories) originating from Indus facilities in Pakistan, Egypt, and Jordan, utilizing cotton from multiple global sources. Indus will have exclusive use of the platform in these countries and non-exclusive use elsewhere. The platform encompasses spray systems, DNA taggant, taggant and genotyping testing services, devices and materials for on-site testing, and isotopic testing services. No rights to the CertainT platform with respect to home textiles were granted under the Agreement.
The Company's cotton tagging revenues have historically been tied to annual cotton harvests; tagging will now occur at Indus's spinners, which operate year-round. The parties intend to implement the CertainT platform at multiple cotton spinning mills in Year 1 of the Agreement with a planned subsequent broader deployment based on forecasts from Indus for tagged cotton.
Dr. James A. Hayward, president and CEO of Applied DNA, stated, "We believe this Agreement is key to reducing the lumpiness in segment revenues to create a steadier revenue stream. For the first time, we have secured a partner that can tag cotton year-round with globally sourced cotton. Furthermore, this is CertainT's first large-scale deployment catalyzed by the implementation of the Uyghur Forced Labor Prevention Act (UFLPA). We expect the UFLPA to be an important tailwind for this segment, informing our sales approach to other apparel textile manufacturers. We look forward to a long and mutually beneficial relationship with Indus."
Indus is comprised of wholly owned and joint-venture production facilities in Pakistan, Egypt, and Jordan that serve brands in North America, the European Union, Australia, and New Zealand, including big box retailers and global leaders in sportswear and premium brands.
Indus CEO Abid Hafeez added, "Innovation and product development are at the heart of our corporate ethos and are fundamental to our ambitious growth goals. CertainT brings innovation to our organization with forensic cotton traceability and supply chain security, from yarn to finished goods, and compliance with the UFLPA for shipments bound to the U.S. Such a capability creates value, sustainability, and traceability for existing customers, giving us a significant competitive advantage in global fashion and apparel. We look forward to our new partnership with Applied DNA and expanding CertainT's footprint within our cotton supply chain in the coming years."
About Indus Group
Indus Group is a licensed CertainT® Cotton partner, specializing in apparel products for global brands. With a commitment to sustainability and transparency, Indus Group is dedicated to revolutionizing the apparel industry's supply chain through innovative solutions.
About Applied DNA Sciences
Applied DNA Sciences is a biotechnology company developing technologies to produce and detect deoxyribonucleic acid ("DNA"). Using the polymerase chain reaction ("PCR") to enable both the production and detection of DNA, we operate in three primary business markets: (i) the enzymatic manufacture of synthetic DNA for use in the production of nucleic acid-based therapeutics and, through our recent acquisition of Spindle Biotech, Inc. ("Spindle"), the development and sale of a proprietary RNA polymerase ("RNAP") for use in the production of mRNA therapeutics; (ii) the detection of DNA and RNA in molecular diagnostics and genetic testing services; and (iii) the manufacture and detection of DNA for industrial supply chain security services.
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Forward-Looking Statements
The statements made by Applied DNA in this press release may be "forward-looking" in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA's future plans, projections, strategies, and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. Actual results could differ materially from those projected due to its history of net losses, limited financial resources, unknown future demand for its CertainT® platform, the unknown amount of revenues and profits that will result from the agreement with Indus Group, limited market acceptance for its CertainT Platform, the unknown future impact of the UFLPA on the demand for the CertainT platform, and various other factors detailed from time to time in Applied DNA's SEC reports and filings, including its Annual Report on Form 10-K, as amended, filed on December 7, 2023, and Quarterly Report on Form 10-Q filed on February 8, 2024, May 10, 2024, and other reports it files with the SEC, which are available at www.sec.gov. Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.
Investor Relations contact: Sanjay M. Hurry, 917-733-5573, sanjay.hurry@adnas.com
Program and Media contact:
MeiLin Wan, 631-240-8849, meilin.wan@adnas.com
Web: www.adnas.com
CertainT®: www.CertainT.com
X: @APDN
LinkedIn: https://www.linkedin.com/company/certaint/
SOURCE: Applied DNA Sciences, Inc.
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