Universal Biosensors to get $1.5m from Siemens

Universal Biosensors (ASX:UBI) will receive a $1.5 million funding injection for fulfilling the first milestone under a coagulation testing collaboration with Siemens Healthcare Diagnostics.

The receipt of the milestone payment will bring the total amount Universal Biosensors has received from the contract to date to $4.5 million.

Universal Biosensors agreed to a deal in 2011 to develop handheld analysers aimed at the point-of-care coagulation testing market for – and in collaboration with – Siemens.

The first milestone was achieved with the delivery of proof of technical feasibility of a new test strip.

Universal Biosensors received a $3 million upfront payment on the signing of the deal, and will be entitled to a further five milestone payments through the life of the collaboration.

The first product that will be developed under the agreement is expected to be launched next year. It will be a version of Universal Biosensors' PT-INR test strip, which was developed to monitor the application of anti-coagulant therapy Warfarin.

Universal Biosensors has estimated that the market for point-of-care coagulation testing is worth over US$10 billion ($10.11 billion) annually, and growing at around 10% per year.

Universal Biosensors is incorporated in the US but operates out of its R&D facilities in Melbourne. The company was founded in 2001.

Its first product was a blood glucose monitoring device developed for Johnson & Johnson, based on electrochemical sensor technologies developed by Universal Biosensors' founding scientists.

Universal Biosensors (ASX:UBI) shares were trading unchanged at 4:30pm on Tuesday at 64c.