Market Overview

Applied DNA Sciences Expands SigNature T DNA System for Cotton Supply Chain Security by Six New Manufacturers of Pimacott and Homegrown Consumer Goods


Applied DNA Sciences, Inc. (NASDAQ: APDN) has expanded its SigNature® T DNA system for cotton supply chain security and traceability with new manufacturers of Pimacott™ and Homegrown™ consumer goods.

"We are very pleased to have on-boarded six new global manufacturers from areas that include India, China, and Turkey. The supply chain custody protocols and procedures, created by Applied DNA Sciences (APDN), have been implemented with the Pimacott- and Homegrown-trained teams, consistent with ISO 9001 quality management systems. These new manufacturers become part of the SigNature T DNA system that includes the secure storage, maintenance, monitoring, inspection, sampling and testing of all DNA-tagged fiber, yarn, fabric and finished goods," stated MeiLin Wan, VP Textiles, APDN.

These new manufacturers are already working with DNA-marked cotton produced in the 2015 ginning season. This unique, technology-enabled approach provides for proof of origin for the cotton used for the final goods, while preserving the purity from the source all the way to the consumer. With the expansion of the SigNature T DNA footprint, APDN continues to leverage its global team of technical and business associates and the recruitment of world-class industry partners.

"The most compelling reason to use SigNature T is that it automatically gives you source traceability or identity traceability (like US-grown, organically grown, or sustainably grown) for the cotton," notes Dr. James A. Hayward, Chairman, President & CEO, APDN. "DNA combined with our IT and control systems, provides end-to-end traceability; it tells you where your product comes from, as well as where it does not come from. With the integrated systems in place, each party in the supply chain can rely upon and audit prior parties in the supply chain to uphold the meaning of the SigNature T DNA."

"Retailers and brand owners can avoid the risk of dilution by cotton from countries that use forced adult or child labor," Dr. Hayward continued. "These retailers can be confident about the product claims that they make to their consumer about sustainability and ethical sourcing. It's field-proven. We have seen, in just one year, the product from one tagging program reach 500 stores. As a result of our growth in DNA supply from five million pounds of cotton in FY2014 to 100 million pounds in FY2015, we look forward to growth from 10 SKUs to 1,000 SKUs, as well as growth in the number of outlets from 500 to 1,700 stores in the US, Canada and Mexico. This framework provides a business model for growth in this market and future supply chain ventures."


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