Shares in Exalenz Bioscience Ltd. (TASE:EXEN) rose in morning trading today, after the company announced an agreement with a large Israeli distributor, whose name it did not disclose, to distribute the company's BreathID test kit for Helicobacter Pylori bacteria.
The company expects NIS 2.25 million in annual revenue from the deal, beginning 12 months from the signing.
Helicobacter Pylori bacteria inhabit the stomach, causing inflammation of the stomach lining and are strongly linked to the development of duodenal and gastric ulcers and stomach cancer.
The parties signed a five-year distribution agreement, with an option to extend by three years. The distributor undertakes, beginning 12 months from the signing, to meet the minimum sales targets stipulated in the contract. The distributor received exclusive rights to sell the BreathID kits in Israel, but not exclusive rights to sell the kit's tablets.
Exalenz is also completing the setting up a marketing network in the US for its BreathID test kit for H. Pylori bacteria. This will give the company access to a potential market of hundreds of millions of dollars, and in which there is only one competitor. In its 2010 work plan, Exalenz estimates US sales of its H. Pylori test kit could reach millions of dollars.
Moshe (Mori) Arkin owns 26.8% of Exalenz, and Hadasit - the Technology Transfer Company of Hadassah Medical Organization owns 13%. Exalenz's share price rose 4.2% by midday today to NIS 1.07, giving a market cap of NIS 113 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2010
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