Osmetech is an international healthcare diagnostics group with two divisions, Critical Care based on the OPTI range of blood gas analysis products and Molecular Diagnostics.
Sales update
Sales for the 6 months ended 31 October 2005 were approximately £3,742,000 (2004- £2,442,000) equivalent to approximately $6,737,000 (2004 - $4,445,000), representing an increase of 53% (52% in US$ terms). All sales relate to the OPTI business.
Critical Care Division
OPTI instrument sales were particularly strong as a result of the recent successful launches of:
- the new touchscreen version of the long-established critical care analyser (CCA), and
- the VetStat product by our distribution partner, IDEXX, in the veterinary market.
Initial sales of the VetStat electrolyte and blood gas analyser have been very encouraging. Customers’ experiences regarding ease of use and reliability have exceeded IDEXX’s expectations. The continued strength of the marketing efforts by IDEXX throughout the world should result in further strong growth for the foreseeable future.
Sales of the new OPTI LION portable electrolyte analyser and OPTI R blood gas and electrolyte analyser with reusable consumable will commence later this month with a roll out of both products around the world through our established international distribution network. These products were successfully exhibited at the American Association of Clinical Chemists Conference (AACC) in Orlando, US in July this year.
These two products further strengthen the OPTI product portfolio and should allow us to accelerate the growth of instrument placements throughout the world, with proprietary consumable revenues continuing for a number of years to come.
Good progress is also being made with IDEXX on the development and supply contract to create a new platform for measuring critical care parameters based on Osmetech’s proprietary optical fluorescence technology.
Molecular Diagnostics Division
The acquisition of Clinical Micro Sensors (CMS) from Motorola was completed in July providing Osmetech with the eSensor, a proprietary instrument and assay technology suitable for moderately complex to complex molecular testing. Simpler tests can be rapidly performed on the OPTI GENE molecular testing platform. These complementary products are gaining Osmetech increasing recognition in the fastest growing market segment of the global diagnostics industry. This awareness will be enhanced later this month when Osmetech Molecular Diagnostics shows the OPTI GENE and eSensor products for the first time at the AMP (US) and Medica (Europe) trade exhibitions.
The development of OPTI GENE has continued on schedule. A recent study of 237 patient samples at Bristol University, UK, demonstrated that the OPTI GENE Factor V Leiden thrombophilia test was 100% concordant with an established Roche LightCycler assay kit. The study showed that the test was simple to perform, rapid and robust with excellent sensitivity, specificity and reproducibility.
The eSensor Cystic Fibrosis test is currently being reviewed by the FDA and based upon the strong test data and other supporting information we anticipate receiving approval either late this year or early next year.
Both Osmetech Molecular Diagnostics instruments, the OPTI GENE and eSensor, are on schedule for launch during the first half of 2006 together with initial diagnostic assays to which we will add new tests from our development pipeline.
Following the worldwide non-exclusive license granted to Roche Diagnostics earlier this year for the use of our proprietary tube technology used in the Opti GENE device we also plan to manufacture and sell the plastic consumable vials as an alternative to existing glass vials; sales are anticipated to commence in the first half of 2006. We are also currently reviewing other near-term molecular testing revenue opportunities.
James White, Chief Executive, Osmetech plc said,
‘The excellent sales growth from our OPTI business reflects our investment in new products and the increasing contribution from the IDEXX VetStat business.
‘With the imminent launch of the OPTI LION and OPTI R products we expect a very strong end to 2005 and start to 2006. This further underlines the excellent progress with OPTI, taking it from a non-core, loss making enterprise when acquired from Roche on attractive terms two years ago to one that is now a profitable and cash generative growth business. For 2005 and 2006 we anticipate that this continuing significant growth will exceed market expectations for OPTI.
‘We have been delighted with the rapid integration of the CMS business acquired in July. The powerful combination of the eSensor product together with OPTI GENE provides Osmetech Molecular Diagnostics with an excellent position in this rapidly developing and growing market sector. Both products remain on schedule for launch and revenue generation in the first half of 2006’
Investor communication
As previously reported, Osmetech is changing to a December year-end. There will be no interim results statement for the 6 month period ended 31 October 2005. The preliminary results for the 8 month period ended 31 December 2005 are expected to be announced in March 2006.
Ends
For further information:
James White, David Sandilands
Osmetech plc 0207 849 6027
Matthew Moth
madano partnership 0207 378 7033 |
