Clinical Genomics
Clinical Genomics is a Sydney- based healthcare company that specialises in screening solutions for the early detection and prevention of cancer.
Need
Clinical Genomics required additional working capital to smooth out manufacturing costs and inventory levels under the supply agreement with Quest Diagnostics.
Solution
We provided a US$650,000 export working capital guarantee facility to Clinical Genomics’ bank, which allowed its bank to approve the working capital required.
Founded in the late 1990s to design and develop easy-to-use screening tools, one of the company’s key products improves the early detection of colorectal cancer.
Clinical Genomics manufactures its products in Australia and started exporting in 2002 after achieving Food and Drug Administration (FDA) approval in the United States, which is its primary market.
Selling to some of the world’s biggest labs right through to small doctors’ offices, the majority of its exports are sold to US buyers, along with a growing presence in China.
Export Finance Australia has been fantastic to work with. I would highly recommend Export Finance Australia for small companies like ours that are looking to grow their world-leading products.
Larry LaPointe
CEO, Clinical Genomics
Maintaining supply
Clinical Genomics operates a distribution centre in the US that primarily looks after the company’s US partners like Quest Diagnostics, one of the largest labs in the world.
Clinical Genomics has a fiveyear, $20 million supply deal with Quest Diagnostics, which involves selling over two million test kits and a million test kits a year for Quest Diagnostics to screen their patients.
To honour this supply agreement, Clinical Genomics needs to provide kits throughout the year, which requires regular cashflow to support manufacturing.
Managing cashflow
Clinical Genomics required additional working capital to smooth out manufacturing costs and inventory levels over the year, given the volume of products required under the supply agreement with Quest Diagnostics.
Clinical Genomics’ bank was unable to approve the finance needed but recommended the company get in touch with us.
We provided a US$650,000 export working capital guarantee facility to Clinical Genomics’ bank, which allowed its bank to approve the working capital required.
This meant Clinical Genomics could balance their cashflow needs to deliver on the supply agreement with Quest Diagnostics, while growing their business elsewhere at the same time.