CardioGenics Holdings Inc. (OTC Bulletin Board: CGNH), a developer of technology and products targeting the IVD segment of the Point-Of-Care (POC) diagnostic market, announced today a further update regarding the status of its agreement with Merck Chimie s.a.s. ("Merck Chimie").
As mentioned in the Company's prior announcement and Current Report on Form 8-K filed on November 24, 2009, Merck Chimie completed their encapsulation of a "test batch" of CardioGenics' proprietary paramagnetic beads (the "CardioGenics Beads") and targeted December 2009 for delivery of the CardioGenics Beads to the Company for "bench testing" to determine adherence of the encapsulated beads to specifications established jointly by Merck Chimie and CardioGenics for the commercial product. In December 2009, the Company received the encapsulated "test batch" of the CardioGenics Beads from Merck Chimie and performed the necessary bench testing.
After analyzing the bench test results, the Company reported its findings to Merck Chimie and both parties agreed that Merck Chimie would undertake technical adjustments to the encapsulation process to meet the specifications. Consistent with the Company's recommendation, Merck Chimie will now encapsulate a second "test batch" of the CardioGenics Beads, incorporating such technical adjustments, and deliver the second "test batch" of the encapsulated CardioGenics Beads to the Company for what the parties anticipate will be the final bench test.
The Company expects to receive the second "test batch" of the encapsulated CardioGenics Beads from Merck Chimie during May, 2010. The Company will shortly thereafter perform its second bench test with those beads and anticipates meeting with Merck Chimie also during May, 2010 to discuss the bench test results and Merck Chimie's efforts for "scaling-up" production of the final encapsulated CardioGenics Beads for commercialization.
While being extremely close to satisfying the jointly developed specification for the commercial product, the Company nevertheless felt that some additional minor technical adjustments were necessary in the encapsulation process in order to optimize performance of the CardioGenics Beads during commercial use.
Dr. Yahia Gawad Chief Executive Officer of CardioGenics Holdings Inc., stated, "We are extremely satisfied with the efforts of Merck Chimie and the talent of their team who are working with our team to commercialize a superior product to meet market needs."
CardioGenics Holdings Inc.