20th May 2014 10:08
LONDON (Alliance News) - EKF Diagnostics Holdings PLC said Tuesday its wholly-owned subsidiary, Selah Genomics Inc, has signed a agreement with a US sales firm to provide testing services for a new suite of womaen's health-focused molecular assays.
The AIM-listed point-of-care, central laboratory and molecular diagnostics business said Selah has signed the agreement with the unnamed US company which has an established customer base of clinicians who currently use tests from their panel of women's health tests, said EKF.
The levels of reimbursement by both Medicare and private payers are expected to range between USD90 and USD450 per sample depending on how many tests within the panel are required by the clinician. The firm said it expects over 1,000 samples to be tested each month based on current run rates.
Under the terms of the agreement, the women's tests will now be tested according to Selah's CLIA certified laboratory in Greenville, South Carolina, and the panel will be expanded to include the Roche cobas HPV Test which has been running in Selah's laboratory for the last two years.
The Roche cobas HPV Test tests for a DNA virus that can cause cervical cancer, EKF said it is the only HPV test that is FDA approved for ASC-US triage, co-testing, and first-line primary cervical screening.
The women's health panel will offer clinicians the opportunity to test samples for HPV and PAP - used for cervical screening - as well as Chlamydia, Herpes, Trichomoniasis and Vaginosis/Vaginitis.
In a separate statement released ahead of the company's annual general meeting Tuesday EKF said it is trading in line with expectations, with Executive Chairman David Evans anticipating further advancement across all areas of the business, "particularly in the second-half of the year, as we see the benefits of integrating our latest acquisitions and the securing of new tenders."
Earlier in the month the company saw its shares drop on the AIM All-Share market after the company said reimbursement by Medicare for Selah Genomic's drug metabolism genetic biomarkers panel, had been reduced to USD495 per sample from USD941 after revisions by the Medicare Administrative Contractor. Commenting on the announcement, Evans said, "We were, of course, disappointed that these reductions were introduced so soon after the acquisition, however, as stated at the time this has no impact on management's expectations for EKF as a whole."
Of the latest agreement signed by Selah Tuesday, the company said, "This new revenue stream adds weight to our strategic expectations for Selah and to management's belief that the significant shareholder value that the Selah acquisition brings to the Group remains as strong as ever."
Looking ahead Evans said "I think it is worth remaining focused on the strength of our business as a whole: across the Company we now have over 65,000 instruments in the field, and have a current run rate of 6 million tests per month being manufactured and distributed by EKF... and the management will be focused on delivering value across the whole company."
Shares in the company were trading 5.40% higher at 25.82 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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