TORONTO, May 22 /CNW/ - Spectral Diagnostics Inc. ("Spectral") today announced the signing of a significant distribution agreement for its EAA(TM) products with A. Menarini Diagnostics Deutschland ("Menarini"), a division of the German Berlin-Chemie AG belonging to the Italian Menarini Group.
The agreement covers Germany and includes an option to extend the arrangement to the rest of Europe, excluding certain countries where Spectral already has distribution agreements in place. The marketing launch of the EAA(TM) by Menarini is scheduled for the summer of 2007.
"The alliance with Menarini is important because it provides the platform for expansion in a major European market and the potential for expansion to new geographies," stated Mr. Rob Verhagen, Vice President of Business Development for Spectral. "Menarini's significant sales and marketing resources, and its broad geographic presence will be valuable as we increase our market in Europe," added Mr. Verhagen.
"During the last few months there have been some very positive developments in our EAA(TM) program. The utility of the assay has been confirmed through data from a number of important clinical studies in various medical applications, new commercial arrangements have been concluded and existing business partnerships have been strengthened," stated Dr. Paul Walker, President and CEO of Spectral. "We are continuing to pragmatically build a strong business platform that will enable sustainable revenue growth over the near to mid-term," added Dr. Walker.
"With 60.000 victims each year sepsis is third-most common cause of death in Germany. Also taking into consideration that the treatment of severe sepsis consumes about one third of intensive care units' budgets in Germany ((euro) 1.7 billion per year) the need for early detection of sepsis becomes evident," stated Ulrich Schmid, General Manager of Menarini Diagnostics Germany. "The alliance with Spectral expands our competitive advantage in the highly competitive German diagnostic market."
Menarini Diagnostics was founded in 1976 as a division of A. Menarini Industrie Farmaceutiche Riunite of Florence, Italy, a multinational healthcare company with annual revenues of over 2.2 billion Euros and an infrastructure made up of eleven wholly owned subsidiaries in Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, United Kingdom and Sweden.. Menarini Diagnostics now employs approximately 700 people, 75% of whom are dedicated to marketing, sales, after-sales service and customer care activities. Its 2005 consolidated revenues were approximately 256 million Euros.
Spectral is a developer of innovative technologies for comprehensive disease management. Spectral provides accurate and timely information to clinicians enabling the early initiation of appropriate and targeted therapy. Current products include Spectral's FDA approved rapid diagnostic for West Nile Virus (RapidWN(TM)) and its FDA approved rapid diagnostic for sepsis (EAA(TM)) as well as a range of other biological reagents. Spectral's common shares are listed on The Toronto Stock Exchange under the symbol SDI.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral's senior management as well as information currently available to it. While these assumptions were considered reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.