bioMérieux and LabTech Systems Sign License Agreement

(Adelaide, Australia), a healthcare equipment and services company, and bioMérieux (Marcy L'Etoile, France), a world leader in the field of in vitro diagnostics, announced that they have signed an exclusive worldwide license agreement for LabTech Systems' automated pre-poured media (PPM) streaker known as MicroStreak.

Under the terms of the agreement, bioMérieux will make payments to LabTech Systems of up to 7 million euros in licensing and milestone payments. In addition, royalties on any product sales will be payable by bioMérieux to LabTech Systems.

bioMérieux will pay LabTech Systems an up-front licensing payment of 2 million euros on signing. There is a further license payment of 2 million euros in three years time or earlier on achievement of certain milestones. If certain production and sales targets are achieved, bioMérieux has agreed to make milestone payments to LabTech Systems of up to 3 million euros in aggregate. In respect of royalties on product sales, the parties have also agreed minimum royalty payments for certain regions.

The fully automated pre-poured media (PPM) streaker is an innovative, patented robotic system for the automation of routine agar plate processing undertaken in microbiology laboratories. This pre-analytic phase still remains manual and time-consuming in most laboratories worldwide. In the current trend of laboratory concentration, there is strong demand for automation that can standardize processes and provide traceability, timesaving and optimized workflow, as well as improved safety.

LabTech Systems' patented robotic instrument, which provides a solution at this early stage of the microbiology process, has major synergies with bioMérieux's pre-poured media range. It also enhances bioMérieux's current portfolio of automated systems including BacT/Alert for blood culture, Vitek 2 for identification and antibiotic susceptibility testing, and DiversiLab for microbial typing.

The initial launch of the system is planned for the first half of 2008, followed by a full commercial launch in the second semester of 2008. It will be sold under the bioMérieux name and trademarks worldwide and on an exclusive basis. LabTech Systems will further develop the technology for and on behalf of bioMérieux, through LabTech's specialized sub-contractors.


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