The RapidBio Systems™ pathogen detection system will primarily be used by agriculture and food processing businesses ranging from growers to distributors, packers, and point-of-delivery businesses such as grocery stores. Potentially, other sites such as restaurants and other food service organizations could use the RapidBio Systems™ pathogen detection system, as well.
The final selling price for the handheld device is currently being determined, but will be about $5,000 and the individual test cartridges will cost approximately $25.
The cost of production for the handheld device is volume-driven but initially it should be less than $2,000 and the test cartridge should cost less than $5.
The RapidBio Systems™ rapid pathogen detection system will be sold directly to large consumers and through selected top-tier distributors in the US and primarily through distributors outside of the US. Additionally, we will sell the system online.
Our longer-term product vision includes newer handheld testing devices (smaller and with onboard integrated electronic communication) and specific test panels with multiple tests on a single test cartridge. At present, RapidBio Systems™ is concentrating on the food-borne pathogen testing market. However, the company’s technology can, in principal, be used for the detection of any bacterial organism which could allow the company to expand into public health applications such as water treatment testing and medical clinical diagnostics.
For food safety testing we are required to obtain independent third-party AOAC International certification for each pathogen before the system can be commercialized. Neither US Food and Drug Administration (FDA) nor US Department of Agriculture approval will be necessary for food safety testing. If we move into clinical applications we would be required to obtained approval from the FDA through its 510(k) process.
Part of our overall business model and company strategy is to focus on product development and commercialization. We plan on outsourcing all manufacturing to strategic partners who are world-class in product manufacturing and packaging execution. In the future, it is possible that some manufacturing might be brought in-house if the customer and/or market needs require us to do so.
Utility patents applications covering all key aspects of the RapidBio Systems™ technology have been filed with the US Patent and Trademark Office. In addition, a Patent Cooperation Treaty application has been filed for major international markets.
The University of Arizona team that developed the original technology has been assisting the RapidBio Systems™ technical team in the refinement of the technology. However, there are no current plans for this relationship to become long-term. The University research team is continuing to work on other technologies that might be of future interest to the company and if this should occur, it is possible the current collaborative arrangement will be resumed.
We plan to sell RapidBio Systems™ products in all major international food safety testing markets for use in both domestic and export agricultural industries. The company will begin commercialization first in the US and then expand its reach according to our strategic international rollout plan.