Mr. Kim Oishi reports
CHINA HEALTH LABS & DIAGNOSTICS LTD. SECURES BID TO INSTALL ITS TOTAL LAB SOLUTION IN 587 RURAL HOSPITALS AND CLINICS IN JILIN PROVINCE, CHINA
China Health Labs & Diagnostics Ltd. has secured a bid to install its total diagnostic lab solution, the BK Clinlab, in 587 rural hospitals in Jilin province, China. A definitive agreement setting out the final terms and conditions of the installation and support packages is expected to be completed in January, 2011.
The installations are expected to start in January, 2011, and be mostly completed by the end of July, 2011. After the completion of the installation, China Health will have installed its BK Clinlab in 797 rural hospitals and clinics in four provinces of China (Jilin, Henan, Guizhou and Liaoning), of which China Health has installed its BK Clinlab solution in 210 rural hospitals, including 124 installed in the fourth quarter of 2010, pursuant to agreements previously announced in the company's release in Stockwatch news dated Nov. 18, 2010.
"Winning the Jilin bid is a key step in achieving our goal of using our proprietary total diagnostic lab solution to establish a leading market share for medical diagnostic products and services in the underserved rural market in China," said Wilson Yao, chief executive officer of China Health. "We look forward to the opportunity to deliver reliable diagnostic services to the rural communities of Jilin, while delivering strong revenue and profit growth to our shareholders."
The BK Clinlab was developed by China Health as a suite of standard diagnostic equipments and reagents, hardware and software, for use in rural labs and supported by China Health's service network. The BK Clinlab total lab solution includes basic in-vitro diagnostic testing equipment (and complementary reagents), such as hematology analyzers, coagulation analyzers, urine analyzers, biochemistry analyzers and electrolyte analyzers. China Health has developed proprietary computer hardware and software that connects the diagnostic equipment and assists with analysis, allowing rural labs to conduct basic diagnostic tests without having patients travel long distances. As part of the BK Clinlab, a network of service centres staffed with trained technicians has and is being set up to provide support to rural labs within the service area and to provide a dependable source of reagents. As rural diagnostic facilities in China are typically underserviced and often lack even basic diagnostic capabilities, China Health believes that it is uniquely positioned to capitalize on this opportunity, as it is the first company in China to identify and create a medical laboratory solution specifically tailored to service the approximately 50,000 rural hospitals throughout China. In addition, in 2009 the Chinese government announced plans to spend 850 billion renminbi (approximately $130-billion (Canadian)) to improve health care over a three-year period, including the construction of almost 40,000 new rural hospitals and clinics.