EKF Wins Distribution Contract and Regulatory Approval for Target Regions

EKF Diagnostics Holdings (Cardiff, Wales, UK), an AIM-listed point-of-care, central laboratory and molecular diagnostics business, announced that it has signed a new distribution contract in China and that one of its OEM (original equipment manufacturer) partners has received further regulatory approval across several target territories.

EKF has signed the new distribution contract – for "Biosen C-Line," its glucose and lactate analyzer – with Tianjin Multiclone Trading Company in China, which could significantly increase its installed user base. The initial contract is for 1,900 analyzers worth approximately EUR 4 million over a 2.5 year period, commencing immediately. The end-customer will also need to purchase consumables for the analyzer, and it is anticipated that this could generate a further EUR 2 million of revenue over the same forecast period. Whilst these initial revenue expectations are extremely pleasing, it is expected that these instruments will have a useful life of up to 10 years, which would significantly increase the consumables revenue for EKF.

Additionally, EKF announced 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 distributer in one of the key territories for diagnostic companies, where the opportunity for rapid growth is clearly 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.”

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