Ekf Diagnostics Regulatory News (EKF)

EKF Diagnostics Holdings plc

("EKF" or "the Company")

Contract win

EKF Diagnostics Holdings plc (EKF.L), a growing business within the in-vitro diagnostic devices market, announces that that one of its South American distributors has received an order from the Instituto Mexicano del Seguro Social ("IMSS"), the Mexican Institute of Social Security, to supply more than 3,500 of its point-of-care haemoglobin testing instruments, the HemoPoint® H2, and related cuvettes. IMSS is the largest social security institution in Latin America.

Whilst the precise terms of the agreement between the distributor and EKF are confidential, EKF has already received part payment via an upfront cash payment of US$1.9m and will be fulfilling the order through existing stock supplies rather than by manufacturing additional products. 

The order from the IMSS is related to its "IMSS-Oportunidades" initiative, a government health programme focussing on preventative diagnostics through the early identification and treatment of conditions such as diabetes, malnutrition, high blood pressure, high cholesterol, anaemia, and other epidemiological diseases. EKF's HemoPoint® H2 instrument will be a key diagnostic tool in this programme which will cover over 10 million IMSS members including the unemployed, farmers, single mothers and the population's lowest income groups.

Julian Baines, CEO of EKF, commented: 

"Our instruments and cuvettes are regarded as the premium choice for near-patient haemoglobin testing in US public health clinics, physicians' offices and hospitals because of their ease-of-use, accuracy and reliability. The ability of the HemoPoint® H2 to provide precise haemoglobin and haematocrit results in one single test means that our product can be used in programmes like the IMSS initiative to provide quick, easy and accurate information to diagnose and monitor conditions like anemia and diabetes.

"Our strategy continues to focus on placing our instruments in as many doctors' surgeries, clinics and health centres as possible around the world so as to ensure long term, higher margin, recurring revenues from ongoing cuvette and consumables sales. This new contract demonstrates that we are executing that strategy successfully and follows on from a similar contract with the Health Ministry of Peru last year and the distribution agreement announced this summer with Alere Inc., which will allow us to significantly expand our market share in the US, one of the world's largest markets."

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About EKF Diagnostics Holdings plc

EKF Diagnostics Holdings plc was formed in July 2010 following the acquisition of EKF-diagnostic GmbH for €14.32m and refocused its strategy to one of building a substantial point of care diagnostics business. As part of this strategy, the Group has integrated three further acquisitions, Quotient Diagnostics Limited (acquired in October 2010 for a maximum of £5.41m), Argutus Medical Limited (acquired in December 2010 for £2.18m) and Stanbio Laboratory L.P. (acquired in June 2011 for a maximum of US$25.5m).

The Company, with its head office in Cardiff and operations in London, Germany, Poland, Russia, Ireland and the US, is a leading diagnostics business, focused on the development, production and distribution of chemical reagents and analysers for the testing of Glucose, Lactate, Haemoglobin, Haematocrit and HbA1c.

In May 2011 EKF entered into a distribution agreement with Alere Inc ("Alere"), a global diagnostics company, under which Alere was appointed the exclusive distributor of EKF's CLIA waived Hemo_Control device and cuvettes in the US, Canada and United Kingdom.

For more information please visit the website: www.ekfdiagnostics.co.uk