Biomedical company Exalenz Bioscience Ltd.'s (TASE:EXEN) share price was up sharply in trading today, after the company announced that it had contracted an exclusive agreement for the supply of its flagship product to LabCorp.
Exalenz Bioscience develops and markets a medical device for testing breathing in order to diagnose and manage diseases in the digestive tract and the liver. The company sells its BreathID devices together with disposable kits needed for the tests. Exalenz Bioscience is currently active in 400 medical centers in the US in diagnosing the presence of H. pylori bacteria using its breathing test. The company obtained approval for marketing the device, which is designed for laboratories, from the US Food and Drug Administration (FDA) in November 2016.
The laboratories market, the main US market for H. pylori in breathing tests, is believed to amount to hundreds of millions of dollars annually. LabCorp is one of two US laboratories carrying out a large number of H. pylori diagnosis tests. Exalenz Bioscience therefore believes that its agreement with LabCorp and its penetration of the US laboratories market will doubles its sales in 2017, followed by substantial increases in sales in the succeeding years.
Exalenz Bioscience CEO Raffi Werner says, "This is an extremely significant milestone in the company's life, and in our penetration of the laboratories market in the US."
Exalenz Bioscience's market cap is NIS 169 million, after its share price climbed 180% over the past year. The share price soared 20% today on higher than average turnovers.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 9, 2017
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