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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.
As previously announced, Osmetech is changing to a December financial year end. As a result, there will be no interim results statement for the 6 months ended 31 October 2005. The preliminary results for the 8 month period ended 31 December 2005 are expected to be announced in March 2006.
Sales for the 8 month period ended December 2005 show an increase in excess of 40% on the corresponding 8 month period in 2004. All sales relate to the Critical Care division and are significantly ahead of management’s expectations.
Sales for the Critical Care division in calendar year 2005 exceeded $14.7m, representing an increase of over 60% compared to the calendar year 2004. Approximately half of this overall growth is due to sales to veterinary distribution partner, IDEXX Laboratories, Inc.
Whilst revenue growth from the OPTI product range is anticipated in the coming year, this is not expected to match the exceptionally strong growth of 2005.
Osmetech’s Critical Care Division (OPTI) has been successfully grown and developed since its acquisition from Roche in April 2003. The Division has a strong product portfolio and is well placed to continue the growth of instrument placements throughout the world, leading to revenues from proprietary consumables for a number of years to come.
Sales of OPTI instruments and consumables remained strong throughout the reporting period. This performance resulted from increased sales of the new touchscreen version of the long-established OPTI critical care analyser (CCA) and the successful launch of the VetStat product by our distribution partner, IDEXX, into the veterinary market.
Sales of the VetStat electrolyte and blood gas analyser have been very encouraging and continue to exceed our expectations. IDEXX’s sales successes and continuing marketing efforts should result in further strong growth for the foreseeable future. As the installed base of instruments becomes established, revenues from proprietary consumables are expected to increase as a proportion of this veterinary business.
In 2006 we will start to see an important contribution to sales from the new OPTI LION portable electrolyte analyser and the OPTI R blood gas and electrolyte analyser with reusable consumable as these products are rolled out internationally.
Osmetech’s Molecular Diagnostics Division is focused on providing practical, cost effective molecular diagnostic technologies and tools that enable a broader range of hospitals and laboratories to offer molecular diagnostic services for improved patient care. This global market is still in its infancy and expected to grow rapidly as the human genome project continues to give rise to more testing and as new technologies open the small to medium hospital market.
Substantial progress has been made in recent months in this area of our business. Clinical Micro Sensors, Inc. has been successfully integrated following its acquisition in July 2005. We are confident of receiving FDA approval for its eSensor instrument and cystic fibrosis (CF) test within the next few weeks, which would be a first for a combined instrument and consumable CF assay.
We remain on target to commence eSensor product sales, as well as OPTI GENE and OPTI TUBE, in the first half of 2006. These products were exhibited in November 2005 at two major international shows in the US (AMP) and Europe (Medica) and generated a significant level of pre-launch interest.
The Board has been delighted with progress to date achieved by the Molecular Diagnostics Division and the Company remains firmly on course to launch three products in the first half of this year. The strong product portfolio should enable Osmetech to enjoy a significant commercial presence in this rapidly growing market and the Board view the future with confidence.
James White, Chief Executive, Osmetech plc said,
‘Osmetech is developing a strong track record for acquiring diagnostics businesses with near-to-market product opportunities and driving them forward through focussed and experienced management, benefiting from a long established commercial infrastructure and a strong international distribution network.
‘The excellent growth in the Critical Care Division reflects new product investment combined with the rising contribution from the IDEXX VetStat business. We expect further progress to be made in 2006.’
Osmetech plc
0207 849 6027
James White, Chief Executive Officer
David Sandilands, Chief Financial Officer
madano partnership
0207 593 4000
Matthew Moth
Mark Way
eSensor: The eSensor product targets relatively complex molecular tests which require the analysis of multiple genetic information such as cystic fibrosis testing and the Cytochrome P450 genes. Combining universal platform design and a patented advanced electrochemical detection technology, the eSensor System can detect and identify many different targets at once.
OPTI GENE: The OPTI GENE is a fast and flexible system for the detection of DNA and RNA targets using technologically proven PCR or RT-PCR based assays targeting simple molecular tests. The OPTI GENE is a compact, self-contained instrument that employs a graphics driven touch-screen user interface and a conveniently packaged OPTI TUBE™ consumable. The system provides independent thermal controls for each sample position, as well as random access for each of the three 4-sample cassettes.
OPTI TUBE: The OPTI TUBE product line consists of plastic tubes and ergonomically designed sealing caps and carousel for use in the Roche LightCycler as a replacement for the Roche glass capillaries, sealing cap and carousel. OPTI TUBE is a cost-effective, robust alternative solution that eliminates the dangers of glass breakage and minimises the risk of laboratory personnel being exposed to potentially dangerous samples and glass shards. |
