EKF Diagnostics business update

EKF Diagnostics, the Point of Care (PoC) diagnostics company, held a meeting in London to update analysts on business progress and the recent acquisition of Argutus Medical.

EKF Diagnostics CEO Julian Baines and FD Paul Foulger reported that the business is progressing well, having completed three acquisitions in roughly six months (EKF Diagnostics GmbH, Quotient Diagnostics and Argutus). The German based EKF business is operating profitably, and the team has won significant sales contracts in Peru and Mexico with the company's flagship Hemo-Control system. EKF is currently negotiating new distributor relationships for the promising US market (for which it is already approved and CLIA waived).

EKF completed the acquisition of Quotient Diagnostics in October, and is expanding the marketing of its PoC HbA1c testing system for diabetes (QuoTest). QuoTest is important in EKF's strategy because it is a quick, cheap and fast test - appropriate for use in a clinic or doctor's office and central to the growth strategy. QuoTest is approved for sale in Europe and China (cartridge approval pending), and a lower cost version (QuoLab) will be launched in Q3 2011.

EKF recently acquired Dublin based Argutus Medical for £2.2 million in shares. The primary reason for the acquisition is to gain access to Argutus' acute kidney injury (AKI) biomarkers. The AKI market is worth $ 1 billion + globally and has applications in diabetes and sepsis, as well as post-operative applications in coronary bypass and organ transplantation. EKF plans to develop PoC assays using the Argutus biomarkers - ultimatley developing an AKI diagnostic that works in a matter of minutes rather than the 2-3 days that current tests require. Argutus CEO Cormac Kilty will join EKF as Chief Technical Officer - filling the need for a technical expert at the group management level.