Tuesday, August 3, 2010

CardioGenics (CGNH.OB) Inks “Key Milestone” Commercialization Agreement with Merck-Chimie

CardioGenics Holdings Inc. develops ultra-sensitive analyzers and other products for the Point-of-Care IVD testing market. The company today announced an agreement with Merck-Chimie S.A.S. to commercialize CardioGenics’ proprietary paramagnetic beads to Merck-Chimie’s customers. Bead shipments will commence in mid-September of this year.

Merck-Chimie is a leading supplier of paramagnetic diagnostic beads, which are integral to every immunoassay analyzer. The bead’s role as a key analyzer component to reflect a broader market valued at roughly $1 billion.

CardioGenics’ technology improves the signaling properties of the beads, which increases the sensitivity of immunoassay analyzers up to seven times and allows for enhanced data collection for disease detection and progression.

Yahia Gawad, MD, CEO of CardioGenics, said the commercialization agreement with Merck-Chimie is a significant achievement for CardioGenics’ and that it will generate needed additional revenue flow.

“Commercialization of CardioGenics’ beads with Merck-Chimie is a key milestone for us and an important validation of our technology,” Gawad stated in the press release. “Merck’s product launch will make a strong revenue contribution and help bring us to cash flow positive.”

Per the agreement, 70 percent of net revenue from the sale of CardioGenics’ beads to Merck’s customers will be allocated to Merck, with 30 percent going to CardioGenics.

For more information visit www.cardiogenics.com

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