Update to shareholders on reimbursement levels received by recently acquired Selah Genomics, Inc.

 7th May 2014

EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care, central laboratory and molecular diagnostics business, provides an update to shareholders on reimbursement levels received by recently acquired Selah Genomics, Inc.

Palmetto GBA, the J11 Medicare Administrative Contractor (‘MAC’), has revised reimbursement levels for the states where Palmetto is the MAC, namely North Carolina, South Carolina, West Virginia and Virginia. As a result, reimbursement by Medicare for Selah’s drug metabolism genetic biomarkers (‘DME’) panel, has been reduced to US$495 per sample from US$941.

Selah’s DME panel is one of a number of molecular tests in the Selah portfolio and the Directors believe the commercial rationale behind the acquisition is unaffected given the considerable opportunity for Selah to continue to add market share. As a result, the reduction in the Medicare reimbursement level for the DME panel has no impact on management’s expectations for EKF as a whole. 

Julian Baines, CEO of EKF commented: “Whilst we would clearly have preferred reimbursement levels to have remained higher we are confident that Selah’s overall portfolio will deliver an enhanced return to our shareholders. Selah’s sales force has established relationships with over 300 physicians, a six-fold increase since October 2013, and we expect to see a considerable increase in revenues from Selah through the rest of this year and beyond.”