Testing time for Dundee diagnostics firm

Published on Tuesday 6 January 2009 20:17

AXIS-SHIELD, the medical diagnostics company, yesterday said it was set to launch a new test for rheumatoid arthritis as it set out the finishing touches to its year-end trading statement, due today.

The Dundee-headquartered firm said it had completed the development and manufacturing of the test, which will be launched into testing kits sold by Abbott, Axis-Shield's largest customer. Tests will be conducted in doctors' surgeries.

Axis-Shield has launched several tests for Abbott's Architect system in recent months, as the companies attempt to take advantage of a surge in the so-called "point of care" market, where tests are completed by doctors, often while the patient waits. As well as developing test kits for other companies, Axis-Shield has developed a system of its own, Afinion, which is expected to form the major share of its growth. The system is sold to doctors near cost price, with the firm making a strong margin on individual tests.

The Scots group is expected to reveal today that revenue in 2008 rose by about a quarter over 2007. But analysts warned yesterday that the company trimmed expectations of how many of the Afinion kits would be installed last November.

Michael King of Nomura Code Securities, who is forecasting a 27 per cent rise in revenue in 2008, said that after shares gained 22 per cent in 2007 they would be "particularly vulnerable to any disappointment".

Axis-Shield shares last night closed up a penny at 312.5p.