By GREGORY ZELLER //
Another week, another significant partnership for Applied DNA Sciences, which continues to make itself at home in the national textiles market.
The Stony Brook-based provider of DNA-focused supply chain, anti-counterfeiting and anti-theft technologies has signed a multi-year licensing agreement with Loftex Home LLC, a well-known maker of high-quality towels and other home textiles.
The new deal builds upon a prior agreement between Applied DNA and New York City-based Loftex Home, announced in March. In the earlier deal, the DNA-focused biotech’s CertainT platform was used to verify the origins and authenticity of recycled polyethylene terephthalate (also known as PET) used in Loftex bath and beach towels.
The new agreement makes the CertainT arrangement exclusive to Loftex Home’s U.S. towel supply, with non-exclusive authenticity of plush throws and bath rugs added to the multi-year deal.
Terms of the new licensing deal were not disclosed, but the contract provides for trademark licensing royalties and “long-term guaranteed minimum annual revenues,” according to Applied DNA.
Calling sustainable-product claims “central” to Loftex Home’s recycled-PET programs, CEO Charles Gaenslen said CertainT had proven itself as a best bet to secure the manufacturer’s supply lines.
“Retailers, brands and consumers want to know where their products come from and where they are going,” Gaenslen said Tuesday. “The response from retailers based on our initial launch of our Fusion Fibers with CertainT collection … exceeded our expectations, which is why we are expanding our use of recycled PET verified by the CertainT platform.”
Applied DNA’s proprietary platform provides a single system for testing products and tracking them through a certified supply chain, starting with the biotech’s “molecular tag,” which confirms quality – in this case, the authenticity of recycled PET supplies – without impacting product performance.
The enlarged Loftex Home deal “highlights the growing awareness and adoption of our CertainT program,” noted Applied DNA President and CEO James Hayward.
“This new exclusive collaboration enables Loftex to provide an added level of trust to its customers,” Hayward said in a statement, including “a public-facing trademark that stands for authenticity and performance.”
The Loftex Home expansion continues a sizzling summer for Applied DNA, particularly regarding PET, a common thermoplastic polymer resin used in clothing, manufacturing processes, food containers and other diverse applications. Earlier this month, the Stony Brook firm announced a similar licensing deal with global textile manufacturer GHCL Ltd. of India, focused specifically on polyethylene terephthalate.
Non-PET positivity this summer includes a seven-figure contract extension with the U.S. Defense Department and a new research partnership with Aloe vera facial-cream specialist Lily of the Desert, along with a $1.8 million private placement – the second seven-digit private capital infusion in less than a year, this led by company executives and an unnamed investor.
But the leaps-and-bounds growth of the company’s textiles segments – long seen as a cornerstone of the biotech’s overall financial fortunes – is perhaps most pleasing to Applied DNA’s executive officers.
“The ability to differentiate its brand in a competitive marketplace reinforces Loftex’s leadership as a transparent and responsible brand,” Hayward noted.