Resonance to provide FerriScan to Novartis Pharma

Resonance Health Analysis Services (RHAS), a subsidiary of Perth-based Resonance Health (ASX:RHT) and formerly known as Inner Vision Biometrics, has agreed to provide its FerriScan diagnostic test to Swiss pharmaceutical company Novartis Pharma for use in its clinical studies.

The FerriScan test non-invasively measures the iron content of the liver, and can be used to detect and treat iron overload disorders including thalassaemia and hereditary haemochromatosis using specifically configured MRI machines. Scan data is analysed at a centralised RHAS image processing centre using proprietary software.

The company anticipates that the initial scope of activities will generate about US$300,000 in revenue through to the end of 2007.

Resonance MD James Williams said that US$300,000 translated into "a significant volume of scans", but added that he could not reveal just how many.

"The important thing for us is, with this agreement and their planned trials, we will be providing FerriScan services to the leading clinicians in this space," he said.

RHAS and Novartis Pharma have signed a frame agreement, with the possibility that FerriScan services will be provided for multiple trials.

"We expect there may be opportunity for several others as they expand their program. This would be start of the revenue stream from them, not all of the revenue stream," said Williams.

Last year, Inner Vision Biometrics signed a similar agreement with New Jersey based Novartis Pharmaceuticals.