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Boldon drug company sees £5 million decline in revenue

Boldon-based drug testing company Immunodiagnostic Systems Holdings PLC, has reported a decline in both automated and manual revenues, with total revenue down £5 million since the company’s last trading statement six months ago.

IDS is experiencing a low level of placements and an acceleration in the decline in manual revenues, with total revenues in the first six months of the financial year are expected to be around £22 million.

Closing net funds were reported as circa £22 million at 30 September 2014, a drop since the last report at 31 March 2014: £27 million.

The following payment of the final dividend in August 2014 and the acquisition of Diametra in September 2014 were listed as the reasons for the decline.

Automated revenues declined by circa 9% compared to the prior year period due to a number of instrument returns and continued pricing pressure on the automated 25OH Vitamin D assay.

Manual revenues declined by circa 30% predominantly the result of a circa 39% decline in manual 25OH Vitamin D revenues.

Direct instruments are those sold or placed with reagent rental IDS end-user customers in the Group’s core markets of the USA and Europe (excluding distributor territories of Spain and Italy).

Direct instrument placements were 8 (net of returns) (H1 2013/14: 16). The total number of instruments placed (directly or through distributors) and sold to OEM partners was 15 (H1 2013/14: 45).

Nevertheless, the company reportedly continue to make good progress in Brazil and China.

They are in the process of placing 2 instruments with a large reference laboratory customer in Brazil and in China they have received their first instrument order for the delivery, by the end of December 2014, of 25 IDS-iSYS instruments.

The company continue to execute on their strategic plan with the key objective of increasing the breadth and depth of the assay menu available on the IDS-iSYS instrument through both internal R&D and partnership.

In addition, the development of the Mark II instrument continues according to plan with launch of the new instrument anticipated in the first half of 2015.

Last month the company announced the acquisition of Italian diagnostic company Diametra and are set to continue to pursue acquisition opportunities which will accelerate the execution of the strategic plan.

CEO of IDS, Patrik Dahlen, said: “The near-term trading environment for IDS remains challenging.

“However, the path to sustainable growth will be based on the expansion of our assay menu and the launch of our new automated instrument and we continue to work hard to deliver on both of these strategic initiatives.”

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