OMEGA Diagnostics is considering using its newly expanded Alva, Clackmannanshire, base to manufacture a new test kit for HIV patients in the developing world – if it can secure Government backing.
Omega believes there is a potential market of millions of people who do not have access to treatment and is working on mass production techniques for the kit, which uses similar technology to pregnancy tests.
Omega, which sells products ranging from food intolerance kits to tests for Hepatitis B, posted a 36% rise in underlying pre-tax profit to a record £1 mil-lion for the year to March 31 as acquisitions and organic growth pushed turnover up 41% to £11.1m.
Chief executive Andrew Shepherd said: "We have resilient trading."
Its allergy and food intolerance businesses saw revenues grow 191% and 10% respectively, the former helped by a full-year contribution from businesses it acquired from German pharmaceutical giant Merck in December 2010. However, sales dropped 2% at its infectious diseases business, in part due to distribution problems at its Indian arm where it has now brought the sales function in-house.
In a further effort to boost the business's long-term growth potential, Omega in June signed a deal with the Burnet Institute in Australia to develop white blood cell tests for HIV patients which it will launch at the end of the month.
The company plans field trials for the rest of the year before seeking to sell the kit, which costs up to $8 each, to customers such as aid organisations.
The CD4 test determines whether an HIV patients's white cell count has fallen to a level where retroviral treatment is required. The current test needs to be carried out in expensive centralised laboratories, whereas the devices being developed could be used in the field.
Omega believes it could benefit from being first to market with a product for the estimated 17.1 million HIV infected people without access to treatment.
It says aid bodies will be able to access patients in more remote areas and the instant results will enable treatment to begin immediately.
Mr Shepherd said: "The potential is really rather massive." He told The Herald that using Alva, where currently 30 of its 120 employees are located, is a "strong option" as a base for mass production of the device.
However, the decision would be in part determined by access to regional selective assistance.
Omega recently increased its space at Alva and installed an lift so its first floor can be used for manufacturing.
Omega's shares rose 0.25p, or 1.8%, to 14p.
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