genedrive terminates distribution agreement with Xcelris
Source - SMW
genedrive has terminated its distribution arrangements in India/SAARC with Xcelris.
genedrive said that as previously announced, commercialisation of the MTB/RIF tuberculosis tests in India has been challenging for some time.
genedrive said that initially it encountered a specific sample preparation problem which was subsequently identified to stem from a supplier component specific to the MTB/RIF test.
It said: 'The corrective action had been successfully tested initially in Indian reference laboratories however we have experienced difficulties assessing the impact of this through our commercial partner Xcleris Labs Limited.' The company said it had now terminated its agreement with Xcelris in the territory and would continue to review how best to address the Indian market and the broader global potential of Genedrive in tuberculosis testing.
It said that as previously communicated the company does not expect to generate short term revenues from the Genedrive MTB/RIF test. Chief executive David Budd said: 'The termination of the contract is of course disappointing, however, the overall market dynamics of MTB/RIF have not changed since we first described the opportunity.
'The clinical challenges remain, and the market is large and well defined with significant potential in decentralised settings.
'With the benefit of additional experience acquired in the field, we believe that with some enhancement to sample collection we can introduce a product suitable for not only the Indian market, but the broader global markets into which we now have distribution channels.'
At 8:09am: (LON:GDR) Genedrive Plc share price was -1.5p at 36p