- Positions CertainT® Platform as a Made in the
USA Solution to Prove Non-Xinjiang Provenance or If Goods May Have
Benefited from Forced Labor -
Applied DNA Sciences, Inc. (NASDAQ: APDN) (the “Company”), a
leader in cell-free, enzymatic DNA production, has been increasing
its engagement with all stakeholders in anticipation of the June
21, 2022, effective date of the “rebuttable presumption” standard
under the Uyghur Forced Labor Prevention Act (UFLPA) signed into
law on December 23, 2021. Under the UFLPA, all imports that
originate from China's Xinjiang Uyghur Autonomous Region (XUAR) or
otherwise use Uyghur or other minorities for forced labor in China,
are excluded from entry into the U.S. by the Customs and Border
Protection agency (CBP) of the Department of Homeland Security
(DHS).
On June 17, DHS issued its much-anticipated Implementation
Strategy (the “Strategy”) for the rebuttable presumption standard
under the UFLPA. In this new report, DHS has, for the first time,
identified DNA traceability and isotopic testing - both central
components of Applied DNA’s CertainT® authenticity platform - as
evidence that importers may present to potentially prove that items
do not originate in XUAR or may have benefitted from forced
labor.
The UFLPA seeks to insulate U.S. companies and consumers from
complicity in forced labor practices in XUAR, which produces nearly
20% of global cotton1. Commercially available for almost a decade,
Applied DNA’s CertainT® platform is a multi-layered textile
traceability solution that offers proof of product origin,
authenticity, and sustainability.
Catalyzed by the imminent implementation of the UFLPA, Applied
DNA is acquiring DNA traceability and isotopic testing clients
intent on establishing proof of origin to comply with the UFLPA in
the near-term with the long-term objective of securing their global
supply chains using CertainT. Louis Dreyfus Company B.V., the
Company’s cotton merchant partner, recently received a request to
ship the first quantities of traceable tagged cotton that is
directly attributable to the UFLPA.
In GFY21, CPB used its forced labor authority to detain almost
1,500 shipments with a value of almost $500 million. The Biden
Administration’s budget request for GFY23, which begins on October
1, 2022, calls for $70 million to implement the UFLPA, to hire 300
additional CBP inspectors, and screen 11.5 times as many shipments
for forced labor violations as is being undertaken currently.
“CertainT is a 100% American solution that is unique in its
ability to offer multiple traceability solutions, including DNA
traceability and isotopic testing that are both cited (see page 49
in the link) in the Strategy. We believe that the high bar
established by the UFLPA with its documentary and supply chain
management requirements place a burden on importers that cannot be
adequately met by fungible reporting frameworks, such as
conventional paper- or electronic systems,” stated Dr. James A.
Hayward, president, and CEO, Applied DNA.
“Coming on the heels of Customs and Border Protection’s budget
request to fully implement the Strategy, we are pleased to see
agreement at the regulatory level as a precursor to potentially
broader industry adoption,” continued Dr. Hayward. “As a U.S.-based
company, we applaud the imperative with which the Strategy is
moving federal law towards action and, not only for its potential
to be transformative to our supply chain security business, but
also to deliver clear societal and ethical benefits to the American
consumer. With the 2022 cotton ginning season soon upon us, we
stand ready to deliver DNA-tagged American cotton to meet brand
demand driven by the UFLPA.”
Andrew Samet, principal at trade consulting firm Sorini, Samet
& Associates and textile lobbyist for Applied DNA, said, “It is
clear from the new strategy document that Homeland Security
officials and others in the U.S. government recognize that
documentary traceability is insufficient. Technology solutions
proving origin, such as DNA tagging and isotopic analysis, are for
the first time being referenced and are the emerging framework both
for authentication and enforcement – forced labor is a key driver
for this secular change now officially underway.”
Learn more about the UFLPA: https://www.dhs.gov/uflpa
Footnote:
1
https://www.supplychaindive.com/news/uighur-labor-will-be-tough-to-avoid-in-cotton-supply-chains/586217/
About Applied DNA Sciences
Applied DNA is commercializing LinearDNA™, its proprietary,
large-scale polymerase chain reaction ("PCR")-based manufacturing
platform that allows for the large-scale cell-free production of
specific DNA sequences.
The LinearDNA platform has utility in the nucleic acid-based in
vitro diagnostics and preclinical nucleic acid-based drug
development and manufacturing market. The platform is used to
manufacture DNA for customers as components of in vitro diagnostic
tests and for preclinical nucleic acid-based drug development in
the fields of adoptive cell therapies (CAR T and TCR T therapies),
DNA vaccines (anti-viral and cancer), RNA therapies, clustered
regularly interspaced short palindromic repeats (CRISPR) based
therapies, and gene therapies.
The LinearDNA platform also has non-biologic applications, such
as supply chain security, anti-counterfeiting and anti-theft
technology. Key end-markets include textiles, pharmaceuticals and
nutraceuticals, and cannabis, among others.
Leveraging its deep expertise in nucleic acid-based
technologies, the Company has also established safeCircle™, a
high-turnkey solution for population-scale COVID-19 testing.
safeCircle is designed to look for infection within defined
populations or communities utilizing high throughput testing
methodologies that increase testing efficiencies and provide for
rapid turn-around-times.
Visit adnas.com for more information. Follow us on Twitter and
LinkedIn. Join our mailing list.
The Company's common stock is listed on NASDAQ under the ticker
symbol 'APDN,' and its publicly traded warrants are listed on OTC
under the ticker symbol 'APPDW.'
Applied DNA is a member of the Russell Microcap® Index.
Forward-Looking Statements
The statements made by Applied DNA in this press release may be
“forward-looking” in nature within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995. Forward-looking statements describe Applied DNA’s future
plans, projections, strategies and expectations, and are based on
assumptions and involve a number of risks and uncertainties, many
of which are beyond the control of Applied DNA. Actual results
could differ materially from those projected due to its history of
net losses, limited financial resources, limited market acceptance,
our unknown ability to penetrate key markets, our ability to
successfully enter into commercial contracts for the implementation
of our CertainT® platform, the uncertainties inherent in research
and development, our unknown ability to provide isotopic testing if
our agreement with Isotech Labs is terminated, and various other
factors detailed from time to time in Applied DNA’s SEC reports and
filings, including our Annual Report on Form 10-K filed on December
9, 2021, its Quarterly Report on Form 10-Q filed on February 10,
2022 and May 12, 2022, and other reports it files with the SEC,
which are available at www.sec.gov. Applied DNA undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events, or circumstances after the date
hereof or to reflect the occurrence of unanticipated events, unless
otherwise required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220621005767/en/
Investor Relations Contact: Sanjay M. Hurry,
917-733-5573, sanjay.hurry@adnas.com Program contact: MeiLin
Wan, 631-240-8849, meilin.wan@adnas.com Web: www.adnas.com
Twitter: @APDN
Applied DNA Sciences (NASDAQ:APDN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Applied DNA Sciences (NASDAQ:APDN)
Historical Stock Chart
From Mar 2023 to Mar 2024