Amphion Innovations (LON:AMP) announced that its partner company Kromek has successfully secured a four year contract with the University of Massachusetts Medical School.
Kromek and UMASS will develop an advanced system for breast cancer detection and diagnosis, which it said could change the way this disease is detected.
The contract, which is worth US$1.5 million to Kromek, was funded via US$4 million from the US National Institute for Health (NIH).
X-ray mammography, which is considered the imaging mode of choice for early detection of breast cancer, records images that represent a three-dimensional (3D) object in a two-dimensional (2D) plane, meaning that normal breast tissue versus tumour tissue can be difficult to distinguish.
Kromek claims its technology can achieve better resolutions of breast tissue without increasing doses of radiation for patients, while the contract has potential to “significantly advance clinical diagnostics, in the field of breast cancer detection, and potentially way beyond”.
"Kromek and NOVA possess a unique technological answer to the challenge of achieving better resolutions of breast tissue, without increasing doses of radiation for patients," Amphion said in the statement.
“The modality we are using, which combines photon counting and cone-beam CT imaging, holds unique promise for the medical imaging market.
“We are looking forward to working together with Kromek and NOVA towards a solution that could change the way breast cancer detection is carried out for many years to come,” said professor of radiology at the University of Massachussets Stephen Glick.
Growth in the mammography market is influenced rising incidence of breast cancer in industrialised as well as developing nations.
The US mammography equipment market is forecast to be worth US$585 million per annum by 2015.
The deal will further expand Kromek’s presence in the medical imaging market, following the announcement earlier this month about our work with Siemens on CT imaging development in Germany and the US.
Just a month ago, Kromek secured official EU certification to provide colour x-ray liquid detection systems to all European airports.
This means that all airports on the continent are free to buy and implement Kromek’s Bottle Scanner product, marking the first time that airports can purchase tested, approved, and secure technology, allowing them to relax the liquid ban.
The technology is set to loosen up security restrictions for air passengers as it will eliminate the ban on carrying liquids on flights by April 2013.
Kromek is seen as the likeliest partner company of Ampion to be the next to become publicly traded.
According to Ampion chief executive Richard Morgan, the earliest the business can be floated would be during the first quarter of 2011, at which point Amphion’s 16% stake should be worth far more than the last valuation of £9 million.
For comparison, Amphion’s current market cap is around £6.4 million.
Meanwhile, Kromek itself managed to raise £12.3 million in an oversubscribed financing in March this year.