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Nordiag Q2 2007
Bergen, 15 August 2007; NorDiag had sales revenues of NOK 3.4 million and other revenues of NOK 1.2 million in Q2-07, compared with NOK 1.4 million and NOK 0.3 million in same quarter 2006. Sales revenues in Q1 07 were NOK 1.6 million and other revenues were NOK 0.7 million. The increase in sales revenue reflects a full quarter with income from the Infectious diseases area, which has had a steady growth through the quarter. EBITDA was NOK - 14.5 million in the second quarter, compared with an EBITDA of NOK - 7.3 million in the second quarter 2006.
The infectious diseases business is progressing well. During Q2 a new distribution agreement with Roche Diagnostics Scandinavia AB was signed. The agreement concerns instruments and kits for preparation and samples in the field of sexually transmitted diseases. New agreements with international partners are in the pipeline.
The development of the cancer Business was somewhat mixed. The sales of the Genefec test picked up as a consequence of resolved laboratory problems, but due to discontinuation of reimbursement for Genefec in Norway, the company has decided to withdraw the current generation of Genefec from the market and focus on introduction of the next generation of the product.
As a consequence of the decision made by the Norwegian Government, the basis for the service laboratory in Bergen, and sales activities related to Genefec II in Scandinavia has been disrupted. Consequently this leads to a necessary restructuring of the organization where some lay- offs may be impossible to avoid.
A close down of current operations at NorDiag`s service laboratory and sales activities in Scandinavia will result in a yearly cost saving in the range of NOK 5 - 10 million, subject to a more detailed calculation of the financial impact of any consequential reorganization.
Genefec III will be designed on the back of the German clinical study, from 700 samples which have now been processed and sent to Germany for un- blinding. It is planned to introduce this new product to the market in 2008.
Full report for Q2 2007 is attached at http://www.newsweb.no
Contact: CEO Mårten Wigstøl, morten@nordiag.com, +47 91165775
About NorDiag ASA:
NorDiag is a biotechnology company with focus on gene based diagnostics in the fields of cancer and infectious diseases. The Company`s first product in cancer diagnosis is Genefec TM for diagnosis of colorectal cancer. The company has other applications for diagnosis of cancer under development, among others a screening product for colorectal cancer. In addition the company has a product for automated sample preparation of sexually transmitted diseases, as well as applications for other infectious diseases in the product pipeline. NorDiag is listed at Oslo Stock Exchange with the ticker NORD. www.nordiag.no