Bioneer said Friday that it has signed a $240 million contract with the Iraqi Ministry of Health to establish a laboratory for testing Covid-19. 

Under the accord, Bioneer will supply and build all laboratory equipment, including extraction for molecular diagnostics, diagnostic devices, and test kits, necessary for conducting research. Bioneer's local partners, Al-musaib, a bridge company, and Scientific Services Bureau, will be in charge of the design.

The contract is the first agreement between a Korean company and the Iraqi health authorities. The Iraqi health authorities have tested the performance of all equipment and kits required for the molecular diagnostics.

Bioneer is the only Korean biotech company that provides a total solution for molecular diagnostics. It has developed core technology for molecular diagnostics and has accomplished a vertical affiliation to develop and manufacture raw materials, test equipment, and kits.

"Although Bioneer's technological prowess was relatively less known and had disadvantages in Iraq, it was helpful that our local partner actively appealed to the Iraqi authorities," an official at Bioneer said. "We are promoting a second contract, as Iraqi health authorities are showing great interest."

Bioneer said it has also developed a test kit that can simultaneously diagnose Covid-19 and flu to prepare for the "twindemic," a convergence of the flu and Covid-19.

Bioneer obtained the approval of the clinical performance evaluation plan from the Ministry of Food and Drug Safety on Sept. 17 for domestic sales. For global marketing, the company plans to complete separate clinical trials and obtain Conformite Europeenne (CE) certification and export license.