InstaCare's operating subsidiary, Pharma Tech Solutions, has signed an exclusive five-year agreement to distribute a novel at-home diagnostic product targeted at an existing FDA approved platform for in-home diabetes testing. The new diagnostic product will be targeted at diabetics already a part of the existing $9.8bn at-home testing market.
InstaCare said that the new diagnostic product is comparable to the existing consumable provided by the platform manufacturer, but priced lower.
Coupled with its agreement with the worldwide distributor, InstaCare expects immediate and substantial revenue streams and anticipates its market share to reach 5% in 2012.
Keith Berman, president of Pharma Tech Solutions and CFO of InstaCare, said: “We are excited to expand our distribution business with a proprietary product that will sell exclusively into an existing, large and extremely profitable market segment.
“Much like a generic drug introduced to target a massive market opportunity with a lower-cost offering, this unique product brings state-of-the-art science and a much lower cost structure, and a much higher profit base to an established and growing $9.8bn industry.”
Robert Jagunich, secretary of Pharma Tech Solutions, said: “The existing diagnostic market segment, which has not seen significant innovation in more than five years, currently drives worldwide revenues of nearly $10bn, in a market that has averaged 20%-plus annual growth over the last five years.
“Moreover, this agreement provides for much higher profit margins to our other distribution agreements, giving us the opportunity to greatly expand our revenue base and our overall profitability as we capture market share.”