Tecan agrees OEM deal with diagnostics company

Tecan has announced the signing of a major new original equipment manufacturing (OEM) deal with a leading diagnostics firm.

The agreement will see Tecan developing and supplying a diagnostic instrument to be used in conjunction with testing kits created by the unnamed company, which is working with Tecan for the first time.

A multi-year supply arrangement for the components has been agreed by the two companies, with sales potential estimated at more than 100 million Swiss francs (72.18 million pounds) over the first five years.

The firms have already completed feasibility testing for the dedicated instrument, with the programme now at an advanced stage of development.

Chief executive officer of Tecan Thomas Bachmann said: "For Tecan the agreement with this new OEM partner has the potential to become one of the most significant OEM agreements signed so far."

According to data from the company's last financial report, Tecan experienced a four percent year-on-year sales growth in 2010, despite difficult industry conditions and its own restructuring efforts.