Radiation technology firm Kromek has received a $1m payment from a major manufacturer as it proceeds into the next phase of a programme with the firm.
The Sedgefield-based company, which makes products for the medical, security screening and nuclear markets across the world, announced that the OEM (Original Equipment Manufacturer) – in the top four in its field within the CT market – has confirmed its decision to progress to the second year of a previously announced programme with the company.
As a result Kromek has received the $1m exclusivity payment, which equates to £611,300.
This payment is part of a programme that comes under Kromek’s mutually exclusive development contract, worth up to $5.3m (£3.24m) with the OEM, for developing and supplying its specialist CZT detectors, for producing high resolution colour X-Ray images by CT scanners.
The firm decided to continue the programme for the second year after sustained progress towards meeting the aims of the development programme.
Arnab Basu, CEO of Kromek, said: “We are delighted to be progressing this project to advance colour CT imaging, which can lead to major healthcare benefits for diagnosis and treatment of cancers, cardiovascular diseases and other pathologies.
“With the success of our collaboration, our relationship with this key OEM partner continues to develop and grow stronger.
“This latest step is a clear endorsement of our technology and our long-term strategy to position Kromek’s subcomponents at the heart of major global OEMs’ medical imaging systems to improve diagnostic capabilities, resulting in better clinical outcomes.”
In a market note Kromek directors said the contract does not change the company’s expectations for the year ended April 30 2015, but that it provides further evidence of the progress towards meeting market expectations.