Immunodiagnostic Systems makes USA breakthrough

Jun 30 2010 by Peter McCusker, The Journal

A NORTH EAST drugs company's plans to see sales rise to £100m within five years have been boosted after it got the green light to sell its most popular product in the US.

Boldon-based Immunodiagnostic Systems Holdings (IDS) is likely to confirm next month that its revenues for the year to March 31 had soared by 50% to £37m prompting their brokers to forecast a “stellar” growth path.

And yesterday the company’s chief executive Dr Roger Duggan sad: “This is a true milestone in the history of IDS, spearheading our entry into the automated sector of the largest market in the world.

“This a huge, huge market and with American sales for our manual testing products already doubling year on years and we are expecting significant further progress.”

IDS is the market leader with its fully automated machine for testing for vitamin D, which is in great demand in the treatment of osteoporosis.

Yesterday the United States Food and Drug Administration (FDA) granted permission for this product – the IDS-iSYS – to be sold in America.

A note from their brokers Brewin Dolphin in Newcastle said: “This is a hugely important milestone for the group and should help drive further sales into the key US market, where revenues for its manual products have been doubling year-on-year to reach £12m.”

IDS had expected to receive approval from the US FDA and had already established a 28-strong sales team in the States to drive orders.

Mr Duggan said the firm is likely to recruit more marketing people in the North East where it currently employs over 90 people. The IDS-iSYS is made at an IDS facility in Belgium where additional jobs will be created adding to its 260-strong worldwide workforce.

The 29-year-old firm has seen revenues increase markedly every year since it floated on the Alternative Investment Market in 2004.

In 2004 it achieved annual sales of around £5m, by 2007 it recorded £10m, in 2008, £19m and last year it achieved revenues of £25m.

Kenneth Gibbs, CEO of IDS Inc in the Unites States said: “IDS Inc has improved its market position during the past year with its manual vitamin D kits.

“Although we were delayed longer than expected in launching IDS-iSYS, we used the time effectively and beneficially to hire exceptional technical service representatives and field service engineers and fully train them to meet our customers’ expectations for service and support.”