Ilex Medical Ltd. (TASE:ILX) subsidiary Ilex South Africa Ltd. has won a five-year contract from the South African National Blood Service (SANBS) to supply its automated blood typing and screening device to hospitals providing blood donations to the SANBS. The company will supply its device to more than 25 hospitals across South Africa in 2008-2010, following the completion of a successful pilot lasting several months at a leading hospital affiliated with the SANBS.
Ilex South Africa will purchase the systems and lease them to the SANBS. The deal is worth $1.5 million a year over 5 years for a value of $7.5 million. The company expects the first revenue from the contract in the fourth quarter of 2008, and intends to rely on its existing labor force and resources.
Ilex South Africa will initially deploy 10 systems at five large hospitals (two each) across South Africa by the third of quarter of 2008. The systems are due to begin operating in the following quarter. The company will deploy a further 22 systems at eleven more hospitals in 2009, and expects to install a total of 50 systems by the end of the project.
The project will give Ilex South Africa the opportunity to expand its business to hospitals and diagnostic centers not affiliated with the SANBS. The company expects to utilize the experience accrued from the current project in other territories, as it did when it launched the product line of Chiron.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2008
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