Contract win and regulatory approval

EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed point-of-care, central laboratory, and molecular diagnostics business, announces that it has signed a new distribution contract in China and that one of its OEM partners has received further regulatory approval across several target territories.

The Company has signed a new distribution contract for Biosen C-Line, its glucose and lactate analyser, with Tianjin Multiclone Trading Company in China, which could significantly increase its installed user base. The initial contract is for 1,900 analysers worth approximately €4.0m over two and a half years, commencing immediately. The end customer will also need to purchase consumables for the analyser, and it is anticipated that this could generate a further €2.0m of revenue over the same forecast period. Furthermore, whilst these initial revenue expectations are incredibly pleasing, these instruments are expected to have a useful life of up to 10 years, which would significantly increase the consumables revenue for EKF.

Additionally, EKF announces that its global German partner has received regulatory approval in China, Brazil, and Japan for its Compolab Ts haemoglobin instrument, which is manufactured by Diaspect, a wholly owned subsidiary of EKF.

Julian Baines, Group CEO of EKF Diagnostics, said: “We are delighted to have signed up Tianjin as a new distributor in one of the key territories for diagnostic companies, where the opportunity for rapid growth is significant. We are also pleased that Fresenius, the global provider of infusion, transfusion, and clinical nutrition, has expanded its sales reach, which paves the way for further growth across South America and Asia.”