Universal Biosensors gets second $1.5m payment

Universal Biosensors (ASX:UBI) has earned a second $1.5 million milestone payment from Siemens Healthcare, seven weeks after receiving the first.

The payment brings the total sum Universal Biosensors has been paid under the pair's blood clot diagnostics project to $6 million, with four milestone payments still to go.

Siemens Healthcare has engaged Universal Biosensors to develop technology for a range of handheld analysers for the point-of-care coagulation testing market, in exchange for a $3 million upfront fee and the six milestone payments.

The latest milestone payments relates to proof of technical feasibility for a third test strip being developed under the collaboration. The first milestone, reached in June, was linked to proof of feasibility of the second strip.

The first product that will be developed under the tie-up will be a version of Universal Biosensors' PT-INR test strip, which was developed to monitor the application of anti-coagulant therapy Warfarin. It is expected to launch in 2013.

The second and third tests will be commercialised following the PT-INR launch.

Universal Biosensors is scheduled to report its FY12 results on August 6th, and will likely provide more details of progress with the project during the earnings call.

The point-of-care coagulation testing market is estimated to be worth over US$1 billion ($962 million), and to be growing at over 10% per year.

Universal Biosensors was incorporated in the US, but operates from its Melbourne R&D facilities. The company was formed in 2001.

Universal Biosensors (ASX:UBI) shares were trading 4.35% higher at $0.600 by around 2pm on Friday, the day the milestone payment was announced.