Clarient and DakoCytomation sign distribution and development agreement

Clarient Inc. a cancer diagnostics services and technology company, and DakoCytomation, one of the world's leading providers of cancer diagnostic tests and automated testing equipment, today jointly announced the signing of a five-year Distribution and Development Agreement that allows DakoCytomation to distribute Clarient's digital cellular imaging and analysis system, called the Chromavision Automated Cellular Imaging System (ACIS), as an adjunct to DakoCytomation's suite of automated diagnostics equipment.

The agreement, based on a Letter of Intent between the two companies previously announced on June 9, 2005, enables DakoCytomation to begin distributing ACIS in North America in September 2005 and eventually expand sales globally, covering more than 70 countries worldwide. The agreement also contemplates that the companies will begin developing more advanced integrated cancer diagnostics solutions and invest in the development of a next generation system.

Through this partnership, DakoCytomation's market leading staining systems will be marketed with Clarient's proven image analysis technology to help pathologists and physicians make diagnostic and therapeutic decisions. Accurate testing is a crucial factor in determining the appropriate therapy and prognosis of a patient in the fight against cancer, said Jes Østergaard, President and CEO of DakoCytomation.

"This partnership supports our strategy of expanding the cancer diagnosis market with new, sophisticated system solutions," said Østergaard. "With the growing number of targeted therapies now available, it is even more important for doctors to identify the best treatment for an individual cancer patient. For this reason, advanced diagnostic systems are an essential tool to characterize and classify specific types of cancer."

Ron Andrews, President and CEO of Clarient, Inc., said that the Company anticipates that the partnership will result in incremental placements over the term of the contract.

"We believe this combination of two leaders in our respective markets will allow us to set the pace and increase our penetration in the expanding field of integrated diagnostic systems solutions," Andrews said. "DakoCytomation has a proven global sales force that can leverage the benefits of the two companies' product lines in world markets. Joining forces allows us to use our synergies as we contemplate future development programs."

For further information, pleas read the attached announcement (PDF).