Accelr8 extends technology evaluation agreement for BACcel rapid diagnostic system

Accelr8 Technology Corporation (NYSE Amex: AXK) announced that it extended its technology evaluation agreement for its BACcel™ rapid diagnostic system with a global diagnostics company. The original agreement was announced on June 17, 2010. The essential terms remain unchanged and continue the funding to Accelr8 during the extended project period. The amended agreement culminates no later than mid-2011. The project includes analysis of ongoing pre-clinical and pilot studies at the Denver Health Medical Center, and at the Barnes-Jewish Hospital in St. Louis (the Washington University in St. Louis School of Medicine). It also specifies certain technical milestones for product engineering and test kit development.

“We are pleased that our industry relationship is being extended.”

Accelr8 also announced receiving a cash grant of $244,479 as part of a new Internal Revenue Code 48D program created by the Patient Protection and Affordable Care Act. This program provides a tax credit or cash grant for qualifying R&D expenditures related to advanced medical technology discovery and development. The amount is the maximum awarded under the program.

According to David Howson, Accelr8's president, "We are pleased that our industry relationship is being extended."

The company and independent principal investigators had reviewed interim data in a clinical pilot study with ICU patients. Although preliminary, the data are fully consistent with the development objectives for diagnostic accuracy and speed. The investigators have submitted the data for presentation at a major medical congress.

"The preliminary data from the ongoing prospective pilot study are consistent with those from remnant specimens. The BACcel™ system can reliably identify and count in less than 150 minutes multiple targeted high-threat live organisms extracted directly from patient specimens. We believe that our data show that we have the first technology demonstrated able to support same-day guidance for treating critically ill patients who acquire a serious infection. The BACcel™ system has the breadth, speed, and accuracy needed to confront the global spread of multi-drug resistant 'superbugs,' as they are labeled by the news media," Howson concluded.