Emerging life science company Proteomics International Laboratories (ASX:PIQ) (NYSEARCA:PILL) will analyse the protein composition of dairy milk products from Australian milk company a2 Milk Company (ASX:A2M, NZX:ATM), a $330 million capped company.
The initial contract period is for 12 months.
Under the terms of the contract, PILL will utilise its state-of-the-art proteomics technology platform to provide analysis of protein in a2 MilK branded fresh milk products to validate protein composition and for quality control purposes.
Proteomics is a key part of the life sciences industry and plays a key role in understanding disease and biological systems, with a global market estimated to be worth $20.8 billion by 2018.
Dr Richard Lipscombe, managing director for Proteomics, commented:
"We are delighted to enter in to this contract with The a2 Milk Company to analyse the protein composition of their premium dairy products."
The company will specifically test for the presence of beta casein variant proteins in a2 Milk's products on a daily basis.
This contract adds to PILL's rapidly growing analytical services customer base and provides further validation of its global, market leading analytics capabilities.
a2 Milk is the manufacturer of the premium branded dairy products and has a significant market presence in Australia and New Zealand, and established operations in China and the UK.
It has recently launched into the US market.
Lipscombe added: "Truth-in-labelling is an area of growing consumer concern and the ability to work with such a high-end company with a clear focus on delivering a unique, high-quality product provides further validation of our global, market leading analytics capabilities.
"The a2 Milk Company represents an ideal client for PILL and we look forward to working with them in a collaborative fashion to help them deliver a consistent high-quality product moving forward."
a2 Milk is naturally occurring cows' milk from stock that only produce the A2 beta-casein protein, and not the A1 protein.
It is an entirely natural and pure cows' milk, which involves no technological processes or genetic engineering.
Historically all domesticated cows produced only the A2 beta-casein-type protein, but as a result of a genetic mutation in European herds, the A1 milk protein emerged and subsequently spread throughout the world in modern farming.
The a2 Milk brand is the only cows' milk in Australia that is completely free from the A1 beta casein protein.
The contract with a2 Milk is a significant commercial milestone for PILL and its analytical services business which is built around its proteomics-based technology platform and ability to test and validate the protein composition of a wide and varied range of products.
Proteomics plays a key role in understanding disease and biological systems, with a global market estimated to be worth $20.8 billion by 2018.
The contract with a2 Milk adds to PILL's rapidly growing client portfolio.
PILL is well funded with over $3 million in cash, after listing on the ASX earlier this month.
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