June 25, 2012 -- CogState (ASX:CGS) has signed a deal giving Merck Canada the exclusive right to market its cognition measurement tests to Canadian doctors.
The companies expect the first commercial sale under the partnership to close before the end of the year.
This marks the first of what is likely to be a series of commercial arrangements to provide CogState's battery of tests to general practitioners.
The commercial terms of the deal were not disclosed, but CogState CEO Brad O'Connor said the agreement “represents the first stage of commercialising the CogState Test in general practice medicine.”
CogState plans to position its tests as tools to help detect the early onset of neurodegenerative conditions including Alzheimer's disease.
O'Connor said Canada was an important target region for the tests, and Merck Canada was the right partner to help break into the market.
CogState tests are currently used in clinical trials and research projects, as well as for sports concussion management and cognitive state testing in the workplace.
CogState the company was founded in 1999 and listed on the ASX in 2004.
In February, the company revealed it had swung to a 1H net profit of $3.4 million, from a $895,000 loss a year earlier.
CogState (ASX:CGS) shares got a 20% bump on the back of the announcement, trading at $0.300 as of around 2:30pm on Monday.