Axis-Shield PoC - Afinion Update

Dundee, Scotland, 8 January 2010: Axis-Shield plc (LSE:ASD, OSE:ASD), the international in-vitro diagnostics (IVD) company, today provides an update on the progress in 2009 of Afinion, its state-of-the-art, point-of-care analyser system, and announces a further acceleration of its commercialisation.

More than 6,700 Afinions

Further to the trading update issued on 18 December 2009, the company confirms that it exceeded its target for Afinion placements in 2009 with more than 2,700 instruments placed during the year, bringing the global instrument population to more than 6,700.

Aggressive placement strategy

In order to capitalise on the current clear market superiority of the Afinion system, the company has decided to adopt a more aggressive placement strategy and to make additional R&D investment to ensure all new tests are launched at the earliest opportunity. As the growth of the installed base of Afinion instruments is accelerated and the Afinion test menu is expanded, Axis-Shield will secure an increasingly strong position in the global physician’s office testing market.

Increased investment in sales and marketing resource

The objective is to increase annual instrument placements to 3,500, which will result in over 10,000 systems in place by the end of 2010. This will be achieved through increased investment in sales and marketing resource, including the recruitment of additional sales representatives, particularly in key markets including the USA, Germany, Switzerland and Norway. The acceleration programme will entail net incremental costs in 2010 of around £2.0 million and is expected to be earnings enhancing from 2011.

Maiden dividend

As previously stated, the company believes that at present it can best use its resources to drive the expansion of the business but it intends to pay a dividend at the appropriate time. In the absence of unforeseen circumstances and dependent upon satisfactory results for 2010, the Board anticipates that it will be in a position to propose a maiden dividend at or around the time of the publication of the results for the year ending 31 December 2010.

Leading point of care diagnostic tool

Ian Gilham, Axis-Shield CEO, commented: “The Afinion system has the clear potential to become the leading point of care diagnostic tool in doctors' offices around the world. Today's announcement signals our intention to accelerate our commercialisation strategy for this innovative system, in order to secure increased global market share and an unparalleled range of accurate and rapid tests for improved patient management.”

End of year results

Axis-Shield expects to announce its results for the year ending 31 December 2009 on 16 March 2010.

Enquiries

Axis-Shield plc Tel: +44 (0)2031787849
Ian Gilham, Chief Executive Officer
Ronny Hermansen, Finance Director
Financial Dynamics Tel: +44 (0)207 831 3113
Jonathan Birt /Mo Noonan

Afinion Update