Delphic deal 'huge coup'

By ADAM GIFFORD

Auckland software house Delphic Medical Systems has signed a distribution agreement with Japanese medical giant Sysmex that will put its software in hospitals and laboratories around the world.

Delphic business development manager Mark Cox said the deal puts the company's exports on a global fast track.

"This is a huge coup for a New Zealand company," Mr Cox said. "We're expecting massive growth in sales of our Delphic AP and Eclair products now Sysmex has opened the door to Europe and the United States."

He said Sysmex was picking sales of the two products to reach $15 million within three years.

Delphic AP (for Anatomical Pathology) is a Lotus Notes application which allows pathologists and laboratory staff to record their results electronically and report them to referring doctors over the internet. It replaces paper-based working methods which were time consuming and created opportunities for processing errors.

Eclair, or Electronic Clinical Information Repository, is software which interfaces with Delphic AP and other laboratory and hospital systems to give doctors and hospitals instant access to lab results.

Sysmex, which is listed on the Tokyo Stock Exchange, has an annual turnover of $US340 million from manufacturing and marketing diagnostic systems to testing blood and urine for disease.

It has 95 per cent of the global market for robotic systems used to test blood.

Mr Cox has been looking for suitable partners for global expansion for the past three years.

While European countries will allow laboratories to buy separate anatomical pathology, haematology and microbiology systems, Britain and the United States requires vendors to offer complete laboratory suites.

"We have been trying for a number of years to go into the US market, but couldn't find the right partner.

"Our relationship with Sysmex in Europe developed at the right time for both companies," he said. "I was looking for a company with a hole in its portfolio we could fill.

"Sysmex tried to write its own AP system and failed. They had a number of dissatisfied customers we were able to help with."

Mr Cox said the distribution agreement could be used for other products which Delphic has "in our back pocket."

Delphic, founded 14 years ago, expects to double its staff of 42 over the next two or three years to develop new products and ready existing products for other language markets.

"We're doing translations now for German, Dutch and French."

Sysmex president Hisashi Ietsugu said his company was attempting to become a significant supplier of medical software. "Delphic is a small but highly innovative company, which has demonstrated its ability to create leading-edge technology," Mr Ietsugu said.

Mr Cox said having a local sales presence through Sysmex in target markets would allow Delphic to grow in importance internationally. "In New Zealand there are 40 to 50 medical laboratories. In the USA there are 92,000 and about the same number in Europe."