Colorado MEDtech Inc. to Manufacture DNA Probe Instrument System for Gen-Probe Incorporated
Business Wire - July 09, 1998 10:27
BOULDER, Colo.--(BW HealthWire)--July 9, 1998--Colorado MEDtech, Inc. (NASDAQ: CMED) announced that its wholly owned subsidiary, RELA, Inc., signed a significant manufacturing agreement with Gen-Probe Incorporated.
Under the terms of the five-year agreement, RELA will manufacture a fully automated high-throughput DNA probe instrument system, known as TIGRIS(tm), for blood screening and diagnostic applications. RELA anticipates revenues to meet or exceed $20 million over the life of the contract. RELA and Gen-Probe are completing the development of the TIGRIS system under a separate contract announced previously. Commercial production of the TIGRIS system is anticipated to begin during 1999.
Gen-Probe was awarded a contract from the National Heart, Lung and Blood Institute ("NHLBI"), which is an arm of the National Institutes of Health, to develop a screening program for both human immunodeficiency virus ("HIV") and hepatitis C ("HCV") using amplification of nucleic acid sequences. Gen-Probe is working with American Red Cross Blood Services to integrate this gene amplification technology into the blood screening process. The TIGRIS system will fully automate the assays which are being developed under the NHLBI contract.
"We are very excited to be working on this project with Gen-Probe, a recognized industry leader in genetic probe technologies," said John V. Atanasoff, Colorado MEDtech's President and CEO. "Our goal is to provide services and products which aid in improving health care at lower costs. The TIGRIS system is intended to do just that by improving the safety of the world's blood supply."
"We believe that incorporating our technology on the TIGRIS system is the best approach to satisfy the public's need for a highly sensitive, reliable method for detecting both HIV and HCV in donated blood to be used for transfusions, " said Henry L. Nordhoff, Gen-Probe's President and CEO.
Gen-Probe is a wholly owned subsidiary of Chugai Pharmaceutical Co., Ltd. Chugai, the ninth largest pharmaceutical company in Japan, spends a higher percentage of its sales on research and development than any other major Japanese pharmaceutical company. Gen-Probe has received 40 FDA clearances for genetic probe tests to detect a wide range of microorganisms, including those causing sexually transmitted disease, tuberculosis, strep throat, pneumonia and fungal infections.
Colorado MEDtech, Inc., through its wholly owned affiliates and operating divisions, is a leading full-service provider of advanced medical products and comprehensive outsourcing services.
CONTACT: Colorado MEDtech, Inc.
John V. Atanasoff, President and CEO
Bruce L. Arfmann, CFO
Telephone: (303) 530-2660
Fax: (303) 581-1010
E-mail: cmedinfo@cmed.com
Website: www.cmed.com
or
Gen-Probe Incorporated
Rita Mattivi, Executive Assistant
Telephone: (619) 410-8903
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