Iris Draws New Blood in Business

IRIS International Inc., a Chatsworth-based company that develops and distributes urinalysis systems, recently announced a deal to distribute a blood analysis system made by Italian company Alifax S.p.A. starting this fall. The move signals movement into a new product line for the company: blood testing. Padova, Italy-based Alifax’s automated Erythrocyte Sedimentation Rate (ESR) analysis systems automate blood tests in laboratories and hospitals. Tom Warekois, president of Iris’s diagnostics division, explained that ESR is a common, non-specific test that measures the fall of red blood cells to determine if there is some chronic problem in patients. “This has technology that can do the test in less than 30 seconds, compared to one hour,” Warekois said. And the time saving benefit is not the only advantage of the product, as it also reduces biohazard materials, he said. Alifax has about 4,500 of these systems in the world, but none currently are in the U.S. This deal with IRIS seeks to change that. With 75 million to 85 million ESR tests ordered annually in the U.S., this product, about the size of a bread maker, is trying to get a share of an active market. According to IRIS, ESR systems are exempt from FDA review prior to commercialization in the U.S. Scott Gleason, a research analyst who specializes in lab services equipment for Stephens Inc., thinks the move is good for the company, in part because it has an existing sales infrastructure. “We are projecting for next year $2 million to $5 million in sales. It’s a nice incremental growth driver for them.” Hematology will be a new product area for IRIS. Warekois said the company will be expanding its product line in this area and will be building future systems in-house. “We are in a launch phase, but this is an ongoing part of our portfolio,” Warekois said. “It is a solid contributor.” IRIS is finalizing the logistics for ESR launch. The company plans to take orders and start shipping product in September or October. The cost for the initial product will be less than $25,000, Warekois said. However, the company also will have a variety of financial structures for the product, including rentals. Phase two of the launch will include a bigger version of the product that will possibly be available later this year. Details on phase two, including price, have not been released. – Leah Gillis