Cepheid Welcomes UNITAID Commitment To Broaden Access To "Ground-Breaking" Xpert® MTB/RIF
SUNNYVALE, Calif., June 14, 2012 /PRNewswire/ -- Cepheid (Nasdaq: CPHD) today welcomed UNITAID's announcement that it has approved funding of $30 million to scale up access to the "ground-breaking" Xpert MTB/RIF in high burden developing countries (HBDC). According to UNITAID, the funds will be used to roll out Xpert-based programs in around 20 countries, in addition to supporting a buy-down of the price of each Xpert MTB/RIF cartridge from $17 currently to around $10.
"We are honored that our innovative GeneXpert® system and Xpert MTB/RIF test are increasingly viewed as integral elements of global programs to combat tuberculosis, and we applaud the ongoing commitment of UNITAID and others to tackle a disease that is still responsible for more than a million deaths a year," said John Bishop, Cepheid's Chief Executive Officer. "While discussions with UNITAID, USAID and the Bill and Melinda Gates Foundation are ongoing at this time and the final agreement is not yet completed, we believe that all parties are committed to working together to enable HBDC programs to access the test at around $10, which should accelerate adoption in the countries where it is most needed."
Cepheid's Xpert MTB/RIF test was endorsed by the World Health Organization in late 2010, and TB programs in more than 61 of 145 eligible countries have since adopted, or are trialing, the test. As the only accurate, easy-to-use and rapid diagnostic available, Xpert MTB/RIF delivers the potential to diagnose both TB and multidrug-resistant (MDR) TB in 90 minutes, which should enable patients to receive the correct treatment more quickly, and reduce the effects of the disease on entire communities.
Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy-to-use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the Company's solutions deliver a better way for institutions of any size to perform sophisticated genetic testing for organisms and genetic-based diseases. Through its strong molecular biology capabilities, the Company is focusing on those applications where accurate, rapid, and actionable test results are needed most, such as managing infectious diseases and cancer. For more information, visit http://www.cepheid.com.
This press release contains forward-looking statements that are not purely historical regarding Cepheid's or its management's intentions, beliefs, expectations and strategies for the future, including those relating to expansion of the HBDC program, the successful conclusion of contract discussions regarding funding HBDC expansion, the speed of adoption of testing in affected countries, the impact of Cepheid diagnostic tests on treatment delivery, and the related impact on the effects of disease. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the Company's current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: the performance of new products; inherent uncertainties in the contract negotiation process for additional HBDC funding; lengthy, complex and inherently uncertain government and non-governmental entity review and approval processes; our ability to develop new products and complete clinical trials successfully in a timely manner for new products; uncertainties related to FDA and foreign regulatory processes for medical tests; the level of testing conducted in relevant countries and communities; impacts on testing in developing countries, including in remote and rural environments; patterns and effectiveness of medical treatment in developing countries; unforeseen supply, development and manufacturing problems; the potential need for additional intellectual property licenses for tests and other products and the terms of such licenses; lengthy sales cycles in certain markets, including HBDC markets; the Company's reliance on distributors in some regions to market, sell and support its products; the impact of competitive products and pricing; the Company's ability to manage geographically-dispersed operations; and underlying market conditions worldwide. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K, its most recent Quarterly Report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.