Agenix severs ties with US, European vet distributor

Blood diagnostics company Agenix is cutting itself loose from Synbiotics, the key distributor of its veterinary diagnostic products in US and European markets.

The move is expected to cause a short-term hiccup in the revenue stream of Agenix wholly-owned subsidiary Agen Biomedical while the company seeks out new distribution arrangements.

Agenix had become increasingly unhappy with the performance of Synbiotics since the two companies signed a distribution agreement in Oct 2001.

Agen Animal Health vice-president Dr Paul MacLeman said Synbiotics had undergone significant changes of management and focus over recent years and has not been able to address the vital US market to Agen's satisfaction "for some time."

The US represents a $US40-45 million market for Agen's point-of-care kits for canine heartworm and the company is looking to service "a far greater market than [Synbiotics] is able to address," MacLeman said.

Agreements with new partners should be announced within two months, he said.

The company is developing new diagnostic tests to address growing sections of the animal health market and is talking with distributors who can help Agen expand its market presence, he said. MacLeman did not reveal details of the new products.

The company will wind up sales of its products through Synbiotics in the next few months, a process which is expected to put a $AUD1 million dent in sales revenues during the remainder of this financial year.

The ASX-listed Agenix produces human and veterinary diagnostic kits through Agen Biomedical and currently has blood clot imaging technology in human trials.

Meanwhile, the company has named Neil Leggett, formerly with Brisbane steel tube manufacturer Orrcon, as its new CFO.