Applied DNA and Everledger will “develop and market a combined physical and digital supply chain traceability and certification solution.”
Applied DNA Sciences (NASDAQ:APDN) announced on Monday (December 10) that it has entered into an agreement with Everledger to develop a blockchain-based platform for tracking “high-value commodities.”
Both companies will use Applied DNA’s CertainT molecular tagging and authentication system with Everledger’s blockchain-based platform to “develop and market a combined physical and digital supply chain traceability and certification solution.”
Monday’s agreement comes on the heels of the companies entering into a memorandum of understanding back in July.
“As consumers demand more proof of claims with their purchases, enterprises and supply networks are now responding to the challenge by investing in such traceability at both the product and transaction levels,” Judy Murrah, chief information officer of Applied DNA, said in the release.
Applied DNA and Everledger claim the partnership will seamlessly connect digital transactions with synthetic molecular authentication in order to track products of “forensically-identified” products through complex ecosystems.
“In collaboration with Everledger we are targeting leather, luxury goods and other high-value commodities as the initial markets for our joint platform,” James Hayward, president and CEO of DNA, said in the release.
Hayward praised blockchain technology, stating that its capability in providing “immutable digital transactions” in relation to product provenance makes it a “perfect fit” for Applied DNA’s CertainT platform.
“If an asset does not have an identity, it does not have ownership, value or existence. In the high-end products market, authenticity, provenance as well as value, cannot be separated,” Leanne Kemp, founder and CEO of Everledger, said in July’s press release.
The CertainT platform enables supply chain security, anti-counterfeiting and anti-theft technology, product genotyping and DNA production for diagnostics, personalized medicine and therapeutics.
Shares of Applied DNA opened Monday’s trading session at US$1.10 on the NASDAQ before dipping to US$1.05 as of market close. The company’s stock is currently ranked as a “Sell” on TradingView, with 17 against, eight neutral and three as a “Buy.”
On TipRanks, Applied DNA is currently ranked as a “Moderate Buy” based off one analyst rating with an average price target of US$3.00 over a 12 month price target estimate.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.