News & Topics

Sep 17, 2009

diagnostic market
-Establishment of a direct sales system in the French market, the second largest in Europe-

ARKRAY, Inc. (President and CEO: Mr. Shigeru Doi; herein ARKRAY) has entered into a capital investment agreement with ELITECH France, a constituent company of the French in vitro diagnostic manufacturer the ELITECH Group, responsible for sales and service activities. Through this capital investment, expansion into the French market shall be spearheaded from two locations offering expansion into different product lines and the strengthening of distribution activities

1. Aim

ARKRAY, Inc. has, in the past, provided products to the French market through local distributors. On 19 May, 2009 ARKRAY SAS*1 was established in Paris and from this autumn shall commence active sales of blood glucose monitoring devices. In addition, through capital participation with ELITECH France, ARKRAY, Inc. aims to increase its share of in vitro diagnostic systems in hospitals and test centers within the French market as well as increasing awareness of its brand.

2. Equity participation with ELITECH France

ELITECH France is a member of the French in vitro diagnostic maker ELITECH Group and is engaged in providing distribution and sale of group products within the French market. An agreement was concluded on 28 August 2009 in which both companies expressed their joint goal of developing business in the French market through the supply of ARKRAY products using ELITECH’s distribution network and customer base. ELITECH France shall be involved in the handling of Hemoglobin A1c analyzers*2 and urine analyzers.

*In the agreement, ARKRAY shall become 34% owner of ELITECH France stock through ARKRAY Europe B.V., a member of the ARKRAY Group, and by allocation of new stock to a third party. This stock acquisition is due to be completed in early October.

3. The French market

In FY2007, the French in vitro diagnostic market was worth approximately 1600 million euros. (approximately 215.8 billion yen; Source: EDMA), and the second largest market in Europe, second only to Germany. It has a self-monitoring blood glucose market of approximately 340 million euros (45.9 billion yen) with a diabetic population of over 3 million, which is expected to rise to 4 million by 2015.

Overview of capitalized company

Company name: ELITECH France SAS
President and CEO: Mr. Bruno Thevenet
Head offices: 305, Allée de Craponne, 13300 Salon-de-Provence, France
Controlling share after investment: ARKRAY Europe, B.V. (34%), Financière Elitech SAS (66%)
Content of business: Distribution and service for in vitro diagnostic devices and reagents.

Overview of the ELITECH Group

This is a in vitro diagnostic device and reagent maker established in 1981 with its headquarters in Puteaux, France. It has distribution centers in France, England, Spain, Switzerland, Serbia and USA as well as manufacturing facilities in France, the Netherlands and USA. It has developed a wide-ranging product lineup using its proprietary biochemistry, microbial, and immunological tests as well as products from other companies.

4. Explanation of terminology

A company established on 19 May 2009 in Paris, France, and that provides distribution and services for self-monitoring blood glucose meters. ARKRAY SAS aims to handle the swift expansion of the self-monitoring blood glucose business, a core business; as well as accelerating development of the French market.

*2) Hemoglobin A1c
This is a composite of hemoglobin and glucose found within red blood cells. This is seen as an important measurement item and an indicator of blood glucose control as it indicates the average blood glucose over the past 1-2 months and is not affected by the timing of blood sampling. It can be used in a wide clinical field from diagnosis of diabetes to treatment.
Since its development of the world’s first dedicated measurement device in 1981, ARKRAY has been a pioneer in the field of hemoglobin measurement analysis. Its products are used in large hospitals, test centers, to small and medium sized hospitals as well as surgeries and clinics.