A tiny British firm rocketed in value from less than zero to more than £20million in a year thanks to its role as middle-man in the largest government Covid deal on record.
Disruptive Nanotechnology Ltd, jointly owned by London chartered surveyor Charles Palmer and Northamptonshire shoe retailer Kim Thonger, was worth nothing at the end of 2019 – with debts of £3,592 and just £85 in the bank.
But a year later it had made profits of £20.5million, and had £18million cash in the bank, according to documents just filed at Companies House.
Pictured: Kim Thonger, the founder and chief executive of Disruptive Nanotechnology Limited
The two men – who are the only employees of the firm – had no background in health before the pandemic struck. But they helped the US-based Innova Medical Group win nine British contracts worth £3.7billion for lateral flow tests, by far the largest set of deals signed with any private company in the pandemic.
Innova accounts for almost half the £7.4billion spent on home Covid testing and it is the mainstay of Britain’s testing regime – though, as the Daily Mail reported last year, the US Food and Drug Administration has snubbed the firm’s lateral flow tests.
It urgently recalled Innova’s tests last year and told people to throw them ‘in the trash’ – and they are not used across the Atlantic.
Innova UK spokeswoman confirmed that British tests are the same, however she insisted they were equally effective as British standards.
However, experts in the UK are skeptical about the accuracy of Chinese-made testing.
London chartered surveyor Charles Palmer jointly owns Disruptive Nanotechnology Limited with Kim Thonger
In the British Medical Journal, last year they wrote that the test had failed in 62% of cases and was of great concern in 33% of cases with high viral loads.
Official UK testing showed only 58% accuracy for people who swabbed or tested their own skin, with better results when high viral loads were present.
British companies have complained that they must sell their test abroad as they lack the support of UK regulators.
With the help of the British taxpayer, Innova and its parent company have splashed out on two Gulfstream private jets,one costing £48million.
In October 2020, Innova chief executive Daniel Elliott spent £3million on a six-bedroom mansion with a sauna, wine cellar and cinema, the Los Angeles Times reported.
Innova, now one of the world’s largest testing firms, was founded by Charles Huang, 57, a Chinese American who went to university in Wuhan – the city where the pandemic began.
Disruptive Nanotechnology Ltd was worth nothing at the end of 2019 – with debts of £3,592 and just £85 in the bank. Pictured: An Innova IVD Covid-19 test is processed by a worker in PPE.
According to The Mail, the revelations are coming as Britain faces a shortage of lateral flows tests. Boris Johnson’s commitment to keeping schools open and businesses open is now in jeopardy. Around 1.5milion families are conducting lateral flow tests each day. Innova was just a start up before the outbreak.
This firm tapped into a testing gold mine by purchasing millions of lateral flow test kits made in China by Xiamen Biotime Biotechnology in early stages of the pandemic.
Partnership with Mr Palmer, Mr Thonger was key to the British government’s approval of the agreements.
In north east London, volunteer give away Covid-19 quick antigen Lateral flow tests today
Innova’s spokesperson said to the Mail that, in order to obtain government contracts, you need to find people who have connections. Mr Thonger, Mr Palmer and others had “made introductions” to Innova for the UK process of testing.
Their firm was getting ‘a few pence’ on every test sold – but that sum runs into tens of millions and is rising. The accounts filed with Companies House last week only cover 2020 when Innova negotiated £978million of contracts – that figure has now risen to £3.7billion, so Disruptive Nanotechnology’s fortune is expected to grow further.
Prior to the pandemic Mr Thonger was a Cardiff University graduate who held senior positions at DKNY, Dune and Dr Martens. He owns his own agency for commercial real estate.
Yesterday, Mr Palmer refused to disclose the exact value of the transactions to Mr Thonger and him on the ground that it was commercially sensitive.
Disruptive Nanotechnology spokesmen stated that they ‘provide goods and services for hundreds of clients across many industries’
He stated that he was central to all pandemic efforts and had saved thousands of people’s lives. He claimed he lived in the same home as before the pandemic and was driving the exact car. Thonger refused to comment.
Dr Huang studied for a masters and PhD at Strathclyde University, and last year thanked the institution with a £50million donation. Innova was developed by Dr Huang from Pasaca Capital his investment company, which he established in 2016.
According to the UK Health Security Agency, all tests are subject to rigorous evaluations. Innova responded to the claim by the US regulator that it was too sensitive and said that they have been approved by UK authorities.
Disruptive Nanotechnology spokesperson said that the company ‘provides goods or services to hundreds, in many different sectors’.