Immunodiagnostic Systems Holdings (AIM: IDH) said that Technogenetics s.r.l., with which it has an original equipment manufacturer manufacturing and supply agreement, has signed a five year distribution deal with A.Menarini Diagnostics covering Europe for its automated test system IDS-iSYS branded as Zenit RA, together with a panel of 21 tests for the diagnostics of autoimmune diseases.
Back in October 2009, IDS and clinical diagnostics company Bouty S.p.A.’s subsidiary Technogenetics announced an OEM manufacturing and supply agreement for the supply of IDS-iSYS systems and consumables, branded as Zenit RA, to Technogenetics . The systems will be sold by Menarini as “closed system” instruments throughout the whole of Europe and countries in the former Soviet Union such as Russia and Ukraine.
The distribution agreement is expected to generate about €12 million in revenues from sales of diagnostic kits manufactured by Technogenetics with additional income from sales of instruments and ancillary reagents supplied by IDS.
“We're very pleased to see that our collaboration with Technogenetics is about to bear fruit and the deal signed between Technogenetics and Menarini significantly expands the route to market for Technogenetics’ autoimmune products. This can only enhance future sales of IDS-manufactured instruments and ancillary reagents across Europe, a great ‘upside’ to our agreement with Technogenetics,” said chief executive of IDS, Roger Duggan.
Menarini has 14 direct subsidiaries, 1,000 employees and a consolidated turnover of €320 million.
Shares in Immunodiagnostics rose 7% on the news.