Diagnostic medical device distributor Ilex Medical Ltd. (TASE:ILX) has extended its deal with the South Africa National Blood Service (SANBS) for an additional five years. The deal is worth NIS 70 million each year, so that the total value is about NIS 350 million.
Ilex Medical's contract with the SANBS includes the sale of devices and kits for identifying various diseases including AIDS and hepatitis. Ilex Medical has a market cap of NIS 300 million.
Ilex Medical will sell SANBS the products of Novartis AG (NYSE:NVS; LSE: NOV; SWX: NOVZ) subsidiary Chiron Corporation, which it represents. According to Ilex Medical, the importance of the new deal is that it consolidates its leading position as a supplier in this sector in South Africa. The company also reports that it holds 55% of the intensive care products market in South Africa.
Ilex Medical chairman and CEO Dr. Moshe Ben Shaul said that the extension of the contract demonstrates customer satisfaction and that most of the company's customers have already extended contracts many times.
Last week, Ilex Medical reported its results for the first half and second quarter of 2009, which showed ongoing growth in both revenue and profit. Revenue in the second quarter of 2009 was NIS 61.5 million, 26.6% up on NIS 48.6 million in the corresponding quarter of 2008. Net profit in the second quarter was NIS 8.4 million, up 128% from NIS 3.7 million in the corresponding quarter of 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2009
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