TIDMASD
RNS Number : 1577Z
Axis-Shield PLC
10 January 2011
There will be a conference call today for investors and
sell-side analysts at 08:00 (GMT) with the management team of
Axis-Shield to discuss this announcement. Please contact Lindsey
Neville at M:Communications for details on Tel: +44 (0) 207 920
2333, Email: Neville@mcomgroup.com.
PRE-CLOSE TRADING UPDATE
Dundee, Scotland, 10 January 2011: Axis-Shield plc (LSE:ASD,
OSE:ASD) ("Axis-Shield" or the "Company"), the innovative
international in vitro diagnostics (IVD) company, today provides
the following update for the year ended 31 December 2010, ahead of
the planned publication of its Preliminary Results on 15 March
2011.
Key Performance Highlights
-- Trading during 2010 is expected to be in line with Board
expectations.
-- Strong revenue growth: total revenues expected to exceed
GBP100 million for the first time in the Company's history, an
increase of approx 6% compared to 2009 (adjusting for the disposal
of Plasmatec).
-- Sales, excluding third party distribution and Plasmatec, are
expected to have increased by approx 9%.
o Point-of-Care Division sales expected to increase by approx
15% (2009: GBP42.6 million)
o Laboratory Division sales stable versus 2009 (2009: GBP22.6
million excluding Plasmatec)
o Direct Distribution sales of third party products are expected
to be at the same level as last year (2009: GBP30.5 million)
-- Axis-Shield continues to build its franchise in HbA1c testing
through Afinion(TM), NycoCard(TM) and AxSYM(R)xtra with revenues up
approx 30% (2009: GBP17.1 million).
Point-of-Care Division
The Point-of-Care Division is a key growth driver for the future
and has continued to perform strongly.
-- Afinion(TM) revenues are expected to be up by more than 50%
(2009: GBP14.8 million).
-- Afinion(TM) Point-of-Care System placements increased by 43%
in 2010. Approx 9,600 systems were in place globally by the end of
December 2010, compared to a total of 6,700 in 2009. The US market
continues to represent an important growth driver, with US market
penetration being maximised through Axis-Shield's own expanded
sales organisation and sales partner, PSS (Physician Sales &
Service).
-- The Afinion(TM) menu extension programme continues to
progress to plan, with the inclusion of a lipid panel scheduled in
2011. The Afinion high sensitivity CRP (hsCRP) test for use in
cardiovascular risk assessment also remains on track.
-- Further to the previous announcement, the prothrombin time
test on Afinion(TM) remains on hold with resources focussed on the
Afinion lipid panel.
-- NycoCard(TM) revenues are expected to be slightly lower
versus 2009 - a consequence of the poor influenza season (2008-2009
winter period) and planned conversion to Afinion(TM) in certain
markets.
Laboratory Division
The pipeline in the Company's Laboratory Division is progressing
well, with the homocysteine franchise positioned to benefit
significantly from the acquisition of the clinical chemistry
homocysteine business of Catch Inc. in December 2010.
AxSYM(R)xtra sales are expected to be at the same level as in
2009 (2009: GBP4.2 million). This platform is gradually being
superseded by ARCHITECT, for which Axis-Shield is also providing
assays.
Cardiovascular
-- Homocysteine sales are expected to be up by around 4% versus
2009 (2009: GBP8.0 million).
Vitamin Deficiency
-- The ARCHITECT Active-B12 test for more effective detection of
vitamin B12 deficiency is on track for launch H1 2011.
-- Filed patents for a novel more effective method of measuring
vitamin D deficiency are attracting much interest from external
parties.
Sepsis
-- The development programme for Heparin Binding Protein (HBP)
continues to progress well. Axis-Shield recently announced an
option agreement with Bio-Rad Laboratories Inc for the
commercialisation of HBP as a novel marker for severe sepsis, and
this represents the second contract with a major global IVD company
for this exciting new marker. There is ongoing interest from other
potential licensees.
Direct Distribution Division
The Direct Distribution Division has performed well in the
second half of the year, providing stable revenue contribution,
particularly in Switzerland, where revenues have been maintained
and market share increased, despite the significant reimbursement
reductions implemented in 2009. Axis-Shield point-of-care product
sales through distribution businesses Medinor, Axis-Shield AG in
Switzerland, Axis-Shield GmbH in Germany and Axis-Shield UK are all
expected to show good sales growth with third party business around
the same level as the previous year, in markets where economic
conditions remain constrained. Axis-Shield continues to seek
further opportunities to expand direct distribution capabilities in
key markets.
Business Efficiencies
A streamlining of the distribution organisation has been
implemented, and as a result, the UK customer support team and
warehouse facility have been relocated and integrated into the
current operation in Dundee. As a result, a restructuring charge of
approx GBP0.5 million will be incurred in 2010 with year-on-year
cost savings to be gained in 2011 and beyond.
Dividend
In the absence of unforeseen circumstances, and dependent on the
final results for 2010, the Board believes that it will be in a
position to recommend a maiden dividend in respect of the year
ending 31 December 2010.
Commenting today, Axis-Shield's Chief Executive, Ian Gilham,
said: "Performance across the divisions has been robust and in line
with our expectations, despite challenging market conditions. These
results demonstrate Axis-Shield's focus on ensuring sustainable
profitability and continued growth."
--Ends--
For more information please contact:
Axis-Shield plc
Ian Gilham, Chief Executive Officer Tel: +44 (0)203
Ronny Hermansen, Finance Director 178 7849
M:Communications
Mary-Jane Elliott / Emma Thompson Tel: +44 (0)207
/ Nick Francis 920 2330
E-mail: axisshield@mcomgroup.com
Geelmuyden Kiese (Norway)
Christian Steenstrup Tel: +47 48 18
88 00
Notes for Editors:
About Axis-Shield
Axis-Shield is an international and innovative in vitro
diagnostics company, headquartered in Dundee with R&D and
manufacturing bases in Dundee and Oslo. The Group specialises in
the supply of instruments and tests for the rapidly growing
physician's office testing market and the development, manufacture
and marketing of innovative proprietary diagnostics kits in areas
of clinical need, including cardiovascular and neurological
diseases, rheumatoid arthritis, and diabetes.
For more information on Axis-Shield, please refer to
www.axis-shield.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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