Exalenz Bioscience Ltd. (TASE:EXEN) has signed an agreement with New Hampshire-based Metabolic Solutions Inc., which will set up and operate an independent test laboratory to analyze diagnostic test results of the Helicobacter pylori (H. pylori) bacteria, a common cause of peptic ulcers. The center is due to begin operations in the first quarter of 2010.
The test center will use Exalenz's BreathID diagnostic kits as well as IRMS devices for analyzing breath test results carried out by physicians across the US.
An Israeli company has begun regular manufacture of the BreathID kits for H. pylori for Exalenz. Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) will produce the pharmaceutical ingredient, urea, for the kits. With these measures, Exalenz has completed the necessary regulatory and logistical measures for the sale of the BreathID kits for diagnosis of H. Pylori in the US.
Today's report follows the announcement last week of the failure of its Phase III trial of the BreathID system to detect liver disease. That announcement caused Exalenz's share to drop 34.5%. The share rose 4.2% in morning trading, after today's announcement, to NIS 1.27, giving a market cap of NIS 99 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2009
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