Strathclyde spin-out Renishaw poised to land lucrative slice of medical diagnostics market

A STRATHCLYDE University spin-out expects to roll out its first product in the spring as it prepares to capture a slice of the multi-million pound medical diagnostics market.

Glasgow-based Renishaw Diagnostics, which was founded as D3 Technologies in 2007 in a joint venture with FTSE-250 engineering outfit Renishaw, will launch a scanner for use in laboratory research.

A similar device will be placed in pre-clinical trials in the spring, with a view to completing clinical trials next year and going on sale for use in diagnostic testing in April 2012.

David Burns, appointed chief executive six months ago, said he had changed the firm's focus so that it would seek regulatory approval for the device to be used in both the EU and US.

Burns said: "The US is potentially a huge market for this type of product. We will initially focus on one market or the other, depending on whether we get regulatory approval in the US or Europe first."

Burns, who is from Edinburgh but has worked extensively overseas, brings with him experience of biotechnology start-up companies in the US and Canada.

He declined to comment on sales targets but said that Renishaw, which owns about 80 per cent of the spin out, had set financial targets and that the spin-out aimed to break even within two and a half years of launch. He said sales could build into tens of millions of pounds.

Burns' comments came ahead of the opening of Renishaw's extended laboratory space at Nova Technology Park in Robroyston on Tuesday. The company plans to expand from 21 to 35 staff by next June.

Principal scientist Alastair Rickets said Renishaw's products would help to speed up the detection of diseases such as meningococcal encephalitis and in the fight against hospital bugs such as noroviruses.