Trading Statement

RNS Number:7739V
Axis-Shield PLC
16 December 2005


                   AXIS-SHIELD 2005 PRE-CLOSE TRADING UPDATE


Dundee, Scotland, 16 December 2005: Axis-Shield (LSE:ASD, OSE:ASD), the
international in vitro diagnostics company, today releases a trading update for
the year ending 31 December 2005, ahead of the Company's close period preceding
the Preliminary Results announcement, expected 8 March 2006. Results for the
period are in line with the Board's expectations, showing a continuing increase
in operating profitability, under IFRS reporting rules.


Reported revenues are expected to show growth of approximately 10% over 2004,
despite no significant contribution from AFINIONTM, our new compact
point-of-care system, due to some delays in the roll-out programme. In
laboratory diagnostics the growth in sales has been largely due to increased
homocysteine revenues, together with the continued good performance of certain
products we manufacture for Abbott, one of the world's largest diagnostic
companies. In particular good growth was achieved on the AxSYM(R) BNP heart
failure marker and thyroid marker tests and the IMx(R) sirolimus test, needed to
monitor blood levels of this anti-rejection drug. Our anti-CCP kit for early
diagnosis of rheumatoid arthritis has also continued to enjoy good sales growth.
In the Point-of-Care Division both NycoCardTM CRP and HbA1c have recorded
encouraging increases in sales. Gross margins are likely to show the improvement
seen at the half year, largely due to a more advantageous product mix. We
continue to exercise tight control on general overheads but we have invested in
additional marketing expenditure related to the launch of AFINIONTM. Research
and Development costs are expected to be lower than 2004, as planned, due to the
reduced external spend on AFINIONTM.


AFINIONTM has been very well received by the market and customers and
distributors are keen to receive the system in commercial quantities. We are
currently holding back on shipments to new accounts while we focus on the
scale-up of instrument production, particularly to ensure sufficient system
robustness for global marketing.  We expect to have this completed during summer
2006. Automatic calibration continues to be a priority for this very compact and
highly sophisticated system. Our automated cartridge filling machine is now able
to absorb the initial predicted volumes and a larger line with four times the
capacity has been ordered for delivery in 2007.  We are readjusting our skills
base in Oslo to ensure optimal resources are in place for the anticipated
engineering and production needs of AFINIONTM and, as a result, while overall
job numbers in the longer term are unlikely to be altered significantly, there
will be some exceptional redundancy costs at the end of 2005. The AFINIONTM
instrument and the first marker, HbA1c, for monitoring diabetic compliance,
received USA FDA 510(k) marketing approval during 2005.


Constructive discussions have been held with the FDA for CLIA-waiver of these
products, to allow use of AFINIONTM by unskilled staff in non-laboratory
settings.


During the second half of 2005 three new laboratory products were launched,
including an automated homocysteine assay for Dade Behring that should further
enhance sales of this important risk marker. As the value of homocysteine
testing becomes increasingly recognised, we are continuing to see unlicensed
competition from several sources, which we are vigorously addressing in the
courts.


The first AxSYM(R) xtra products are approaching launch and these will include
kits to measure anti-CCP, HoloTC, a more efficient method for the detection of
vitamin B12 deficiency, and D-dimer for detection of deep vein thrombosis and
pulmonary embolism. Today's announcement on our new contract to develop and
manufacture anti-CCP and homocysteine tests for the Abbott ARCHITECT(R) system
should generate significant future revenues.


We continue to work on products to measure variants of the Activated Factor XII
molecule and very encouraging results were presented at the November annual
meeting of the American Heart Association in Dallas. These data demonstrated
that our prototype tests strongly predicted which patients admitted to hospital
with chest pain had a subsequent heart attack or died.


We announced in November that Axis-Shield was involved in a new #10 million
project co-ordinated and funded by ITI Techmedia to develop a biosensor-based
instrument platform for theranostic applications. ITI Techmedia is one of three
institutions set up by the Scottish Executive to encourage and exploit Scottish
innovations in certain key areas including healthcare.


Nigel Keen, Axis-Shield Chairman, commented: "This has been a rewarding year for
the Company with good all-round performances across the divisions, enabling us
to sustain the profitability we reported at the half year. The market feedback
on AFINIONTM has been very positive and, with the roll-out of substantial
numbers of AFINIONTM instruments together with the launch of the first AxSYM(R)
xtra markers and the new programme on ARCHITECT(R), the Company is well placed
to deliver strong revenue growth in the coming years, creating increased value
for shareholders."


A conference call for analysts will be held at 9.30am UK time today.  Please
call Mo Noonan on 020 7269 7116 for details.


Enquiries


Axis-Shield plc
Svein Lien, CEO                                          Tel:  [phone]
Paul Garvey, Finance Director                            Tel:  [phone]

Financial Dynamics
David Yates / Sarah Macleod/ Davina Langdale             Tel:  [phone]


Notes to Editors


Axis-Shield is an international in vitro diagnostics company, headquartered in
Dundee with R&D and manufacturing bases in Dundee and Oslo.  The Group
specialises in the development, manufacture and marketing of innovative
proprietary diagnostics kits in areas of clinical need, including cardiovascular
and neurological diseases, rheumatoid arthritis, alcohol abuse and diabetes. It
has a special focus on effective testing at the point of care, for improved
patient management.


News releases and company information are available at www.axis-shield.com.



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