bioAffinity Opens a New Federal Sales Channel for CyPath Lung Through AvMEDICAL

Key Points

• AvMEDICAL will market CyPath Lung through its national sales team and established federal procurement network.
• The agreement targets VA medical centers and other U.S. government healthcare agencies.
• AvMEDICAL is a Service-Disabled Veteran-Owned Small Business, or SDVOSB, with access to government purchasing vehicles, including IDIQ contracts.
• CyPath Lung is a laboratory-developed test performed by Precision Pathology Laboratory Services, bioAffinity’s wholly owned CLIA-certified and CAP-accredited laboratory.
• The companies did not disclose contract value, minimum purchases, expected testing volume, or revenue guidance.

 bioAffinity Technologies, Inc. (NASDAQ: BIAF) has signed a nationwide distribution agreement with AvMEDICAL to expand access to CyPath Lung across federal healthcare systems, including U.S. Department of Veterans Affairs medical centers. The relationship gives bioAffinity a potentially scalable government-market sales channel for its noninvasive lung-cancer diagnostic test.

 AvMEDICAL Provides bioAffinity With Federal Procurement Experience

The partnership gives bioAffinity access to AvMEDICAL’s existing government relationships, nationwide sales force, and contracting infrastructure. This may allow the company to reach federal customers without having to build its own specialized government sales and procurement organization.

AvMEDICAL and bioAffinity plan to develop co-branded marketing materials, while Av Medical’s sales team will actively promote CyPath Lung to federal healthcare customers. Its SDVOSB designation and access to indefinite-delivery, indefinite-quantity, or IDIQ, contracts may streamline purchasing for government facilities that want to use the test.

For bioAffinity, this creates a new route to market. The commercial impact will depend on whether AvMEDICAL can convert its federal relationships into test orders and repeat adoption.

 VA Medical Centers Create a Potential Market for Lung Testing

The VA is a relevant target market because lung cancer is a significant health concern among veterans. bioAffinity cited VA data indicating that nearly 8,000 veterans receive a lung-cancer diagnosis each year and approximately 5,000 die from the disease annually.

The agreement gives veterans another potential access point for CyPath Lung within federal healthcare facilities. However, individual VA medical centers and clinicians must still decide whether to adopt and use the test. The agreement does not guarantee reimbursement, orders, test volume, or revenue.

 CyPath Lung Supports Evaluation of Indeterminate Lung Nodules

CyPath Lung is a noninvasive laboratory-developed test designed to help physicians assess lung-cancer risk in people with indeterminate pulmonary nodules. The test is intended to complement imaging, medical history, and other clinical findings rather than serve as a standalone diagnostic tool.

In a published study of high-risk patients with lung nodules smaller than 20 millimeters, bioAffinity reported 92% sensitivity, 87% specificity, 88% accuracy, and a 99% negative predictive value. These figures describe test performance in that study population and do not ensure the same results across all clinical settings.

 Federal Adoption Will Determine the Deal’s Financial Value

The AvMEDICAL partnership increases bioAffinity’s commercial reach, but it does not disclose a near-term financial contribution. The arrangement will become more important to BIAF investors if it produces initial VA or other federal agency customers, recurring CyPath Lung orders, and measurable test-volume growth.

Investors may watch for announced federal customer wins, procurement activity, reimbursement developments, laboratory-testing volumes, revenue contribution from CyPath Lung, and signs that AvMEDICAL’s sales network is converting government access into sustained commercial demand.