Optos widens its net with distribution deal with Accutome

Under the deal, the Scots firm will distribute three eye-scanning machines made by US outfit Accutome in North America and parts of Europe.

The market for the devices is estimated to be worth about $50 million (32m) and Optos expects the deal to lead to a "modest improvement" in its top line.

With its own sales force already well-established, the increased sales are expected to translate into a rise in profits, with few additional costs involved. Specific financial terms of the deal were not released.

Optos chief executive Roy Davis said: "We believe the Accutome devices are highly complementary to our retinal imaging devices.

"While revenues from sales of these products are expected to make only a modest improvement to our top line, we believe they are a good first addition to our product offering."

Taking on distribution contracts was part of Davis' strategy at Gyrus, the medical device firm that he led to a near-1 billion takeover by Japanese camera maker Olympus in 2007.

Brian Chandler, president of Accutome, said: "Accutome currently promotes these devices through our telesales-force and we believe an exciting opportunity exists to increase our product sales through promotion by Optos' 67 account managers."

Julie Simmonds, an analyst at joint house broker Piper Jaffray, said the contract was the first step towards broadening Optos' product portfolio and that she expected further announcements to follow.

Simmonds added: "This agreement offers the potential for additional revenue to Optos for little incremental cost.

"The impact on revenue is likely to be modest but we see this as a good first step, enabling further distribution deals."