EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care diagnostics business, announces that it has entered into a conditional distribution agreement with Alere Inc (“Alere”), the global diagnostics company, under which Alere has been appointed the exclusive distributor of EKF’s CLIA waived Hemo Control device and cuvettes in the US, Canada and the United Kingdom. The device is currently distributed in the United States under the name HemoPoint H2.
The distribution agreement, which is for an initial period of three years and then terminable on notice by either party, has minimum sales levels which are designed to enable EKF to rapidly expand into an existing customer base.
The Directors believe that the agreement with Alere, which will give EKF immediate access to one of the largest direct sales forces in the US within the point of care market, will enable EKF to significantly grow market share in the US haemoglobin testing market.
The agreement is contingent on the acquisition of Stanbio Laboratory L.P. (“Stanbio”) becoming unconditional in all respect, which the Board believes will take place on or around 16 June 2011. Further details on the acquisition of Stanbio have been announced today and are contained in a circular to shareholders which is expected to be published later today.
Commenting on this distribution agreement Julian Baines, CEO of EKF Diagnostics Holdings plc, said:
“I have had a strong working relationship with the Alere team for a number of years and I am delighted that we will have the weight of their backing behind us as we build sales of the Hemo_Control device in North America and in the UK. When we first brought the enlarged EKF group together on AIM we identified that we were under-represented in terms of sales to the US. The establishment of this relationship with Alere and the acquisition of Stanbio delivers on our promise to address this major opportunity.
“We expect that with Alere’s strong customer relationships and demonstrated expertise in this market, as well as the high quality of our product, we will gain considerable market share in the US.”