bioMérieux and LabTech Systems sign exclusive worldwide license agreement for innovative robotic microbiological instrumentation

The fully automated pre-poured media (PPM) streaker is an innovative, patented robotic system for the automation of routine agar plate processing undertaken in microbiology laboratories. This pre-analytical phase still remains manual and time-consuming in most laboratories worldwide. In the current trend of laboratory concentration, there is strong demand for automation that can standardize processes and provide traceability, timesaving and optimized workflow, as well as improved safety.

LabTech Systems’ patented robotic instrument, which provides a solution at this early stage of the microbiology process, has major synergies with bioMérieux’s pre-poured media range. It also enhances bioMérieux’s current portfolio of automated solutions including BacT/ALERT® for blood culture, VITEK® 2 for identification and antibiotic susceptibility testing and DiversiLab® for microbial typing.

The initial launch of the system is planned for the first half of 2008 followed by a full commercial launch in the second semester of 2008. It will be sold under the bioMérieux name and trademarks worldwide and on an exclusive basis. The technology will be further developed by LabTech Systems for and on behalf of bioMérieux, through LabTech’s specialized sub-contractors.

“This collaboration with LabTech Systems is a major license agreement for bioMérieux in our strategy to become the undisputed global microbiology leader. This exclusive access to LabTech technology will enlarge our current product offering. By providing a plate streaker instrument, bioMérieux will increase its microbiology leadership in the coming years, reinforce its microbiology portfolio synergies and provide standardization and traceability to labs. This new bioMérieux instrument will also help us reinforce our PPM business, for which we are in the process of expanding our capacity and geographic reach” said Stéphane Bancel, Chief Executive Officer of bioMérieux.

Lusia Guthrie, Managing Director of LabTech Systems, said the agreement with bioMérieux was a defining moment for the Company. “LabTech Systems is proud to be working alongside such a recognized leader in the field on a world-class innovation borne out of Australia. Like all brilliant technologies, MicroStreak® is a novel idea that applies innovative design and engineering to meet a much needed demand that will enable laboratories globally to operate more efficiently and cost effectively,” said Mrs Guthrie.

Under the terms of the agreement, bioMérieux will make payments to LabTech Systems of up to 7 million euros in licensing and milestone payments. In addition, royalties on any product sales will be payable by bioMérieux to LabTech Systems.

bioMérieux will pay LabTech Systems an up-front licensing payment of 2 million euros on signing. There is a further license payment of 2 million euros in 3 years time or earlier on achievement of certain milestones. If certain production and sales targets are achieved, bioMérieux has agreed to make milestone payments to LabTech Systems of up to 3 million euros in aggregate. In respect of royalties on product sales, the parties have also agreed minimum royalty payments for certain regions.

About LabTech Systems Ltd
LabTech Systems (ASX Code LBT) was formed in 2004 as a medical technology development company and listed on the Australian Stock Exchange on 31 July 2006. The company has enjoyed rapid growth by accelerating its corporate strategy and the MicroStreak® product development program to fully exploit the opportunities in the global marketplace.
LabTech Systems works with leaders in the field of technology and science and recently received an AusIndustry Commercial Ready Grant of $2.14 million to progress the novel technology. Other information can be found at www.labtechsystems.com