SHARES in Axis-Shield, the Anglo-Norwegian medical device developer, surged more than 4% yesterday after the company announced it had signed another agreement with Abbott Laboratories of the US to produce a new automated blood-testing kit.
Axis, which has its headquarters in Dundee and Oslo, said the kits will monitor blood levels of the anti-rejection drug, rapamune, a treatment taken by patients who have undergone kidney transplants.
Specifically, rapamune is recommended to avoid organ rejection in patients considered to be at low to moderate imm-unological risk.
Shares yesterday climbed 6p to close at 175p.
Paul Garvey, Axis finance director, said the deal was expected generate about (pounds) 500,000 a year for the com-pany after 2007.
''This is a slightly more limited market for us,'' said Garvey. ''We are fast-tracking the development and plan to have it to market in 12 months, as opposed to the typical 24 months. ''
Earlier this year, Axis signed a 10-year deal to develop diagnostic tests for Abbott Laboratories.
At the time, the company said the deal - which will be worth $20m ((pounds) 11.5m) a year in revenue by 2008 - was ''the most important one that we have''.
A separate deal between Abbott and drug giant Wyeth, the maker of rapamune, was also announced yesterday on a collaboration and licence agreement to develop an automated blood test to monitor therapeutic levels of the anti-rejection drug.
Under the terms of the deal with Axis, the Dundee firm will act as Abbott's manufacturing and testing partner for the new kits, while Abbott will distribute them world-wide.
Svein Lein, Axis chief executive, said: ''Today's development and manufacturing agreement further extends our strong relationship with Abbott and takes Axis Shield into a new market segment.''
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