Optiscan receives first Pentax order

Optiscan Imaging's (ASX: OIL) partnership with Japan's Pentax Corporation to develop a flexible endomicroscope has taken another step forward with the Melbourne biotech receiving its first major order for the supply of components.

In February last year, Optiscan entered the deal with Pentax to develop an advanced, flexible endomicroscope incorporating the Australian company's confocal microscope technology.

Pentax is currently one of the biggest players in the global flexible endoscopy market, which is valued at US$830 million, and is seeking to be number one through the implementation of new technology.

The companies are developing the device for use in the diagnosis of diseases such as bowel cancer to give surgeons the ability to view cell detail at a magnification of 1000 compared with the magnification of 10 times in traditional endoscopes.

Their collaborative technology is currently in clinical trials in Melbourne, Germany and Japan, while a prototype was exhibited in May at the Digestive Diseases Week Congress in Orlando Florida.

In the latest development, Pentax has placed the initial order for Optiscan to provide components in time for the anticipated market release early next year.

Optiscan chief executive Matthew Barnett said the order marked an important milestone to commercialisation.

"It is the first commercial sale of Optiscan's miniaturised confocal microscopes for use inside the human body," Barnett said. "And the relationship with Pentax will allow us to leverage other significant deals for our remaining technology."

He said Optiscan's confirmed role as a supplier to Pentax would also generate supplier margins as well as downstream royalties when Pentax sells flexible endomicroscope systems through its international sales force to end-users.

At the time of writing Optiscan was trading 3.5 per cent lower at 55 cents.