Glycominds Ltd.'s (TASE: GLCM) share jumped 17% in trading yesterday following a report that it has signed, through its subsidiary in the US, an initial payments settlement agreement with MultiPlan. MultiPlan is one of the largest PPOs in the US, with 20 million subscribers and 900,000 health providers, including hospitals, clinics, laboratories, doctors, and health providers who work with 1,400 insurance companies.
According to the agreement, Glycominds' multiple sclerosis tests will be considered an out-of-network service at a cost of only 10% of list price, plus the patient's co-payment.
At the beginning of the month, Glycominds announced that it will be entering the Israeli market. The company received approval from the Israel Patent Office for early-stage multiple sclerosis diagnostic and disease management kits. The approval permits the company to market and sell the kits in Israel, which the company began on November 1, 2011.
Glycominds added that the Israeli patent strengthened the company's intellectual property, and that it now has more than 100 approved and registered patents worldwide. Initially, Glycominds' blood test kits will not be covered in the government basket of healthcare services, however, the company plans to seek their inclusion.
The company mainly markets the kits in the US, after launching sales there a year ago. Blood tests conducted in Israel will be sent to a California laboratory for processing. Glycominds' blood tests shorten the diagnostic time for multiple sclerosis tests. The company's products have no competitors, and it estimates the market potential at $1 billion.
Glycominds' share price rose 8.27% in trading today to NIS 0.67, giving a market cap of NIS 21.9 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2011
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