Omega Diagnostics, the Clackmannanshire-based medical diagnostics firm, yesterday said it had signed an exclusive deal with Finnish company Biohit Healthcare to distribute Omega's Genesis products throughout the UK NHS hospital network.

Omega Diagnostics, the Clackmannanshire-based medical diagnostics firm, yesterday said it had signed an exclusive deal with Finnish company Biohit Healthcare to distribute Omega's Genesis products throughout the UK NHS hospital network.

The AIM-listed company, which has its headquarters in Alva and in 2007 completed a reverse takeover of Cambridgeshire-based Genesis Diagnostics, last week told The Herald that it was seeking backing from venture capital trusts to continue expanding during the credit crunch.

Finance director Kieron Harbinson declined to put a value on its distribution agreement with Biohit, a company which also develops, manufactures and markets liquid handling products and diagnostic test systems for use in research, health care and industrial laboratories.

However, when asked if the deal was worth more than £1m, Harbinson said: "Not at this stage.

"But while we anticipate a drop in revenue per unit, that will be more than offset by the greater coverage and the growth in sales.

"And it also provides us with considerable potential to keep growing sales."

Under the terms of the agreement, Biohit will take on the UK distribution and servicing of the Genesis product range using its UK-wide sales force and will offer complete coverage of the UK NHS hospital network.

Harbinson added the agreement did not apply to the product ranges of Omega itself or Cambridge Nutritional Sciences, which it also acquired last year, but only to the Genesis range.

Genesis Diagnostics specialises in high quality diagnostic test kits for use in autoimmunity, immunology and microbiology laboratories.

Biohit already services many current Genesis customers and the customer base is expected to expand as a result of this agreement.

Andrew Shepherd, the chief executive of Omega, added: "The UK market for clinical diagnostic products is highly competitive and we need to have a full scale sales force that can operate across the UK and increase our business base going forward.

"Using Biohit provides us with access to a much enlarged customer base and allows our resources to be focused on other growth areas in the UK and beyond."

The company last week announced that it made a pre-tax profit of £266,893 in the year to the end of March, compared with £1.2m the year.

Turnover was up 56% to £5.4m.