distribution agreement with clinical medical m

Distribution Agreement with Clinical Medical Marketing
On 25 July 2008, Sun Biomedical Limited (ASX: SBN or the Company) signed a distribution agreement
with Clinical Medical Marketing (CMM) giving CMM exclusivity in the Australian workplace testing
market for OraLine. CMM is a supplier of drug and alcohol testing products to many sectors of
industry, including Mining, Heavy Industry, Law Enforcement and Transport. Their key customers
include certain business divisions of the Toll Group, Hamilton Island Enterprises and DriveCheck
Australia. At different stages CMM has sold OraLine to more than 140 business divisions.
To better meet their customer’s needs, CMM has launched MediScreen which is a unique approach to
onsite drug testing, using OraLine, that is delivered through a national network of trained personnel,
utilizing a web based management, co-ordination and tracking system. MediScreen has also
established a partnership with an accredited laboratory that is able to provide same day confirmation of
any positive drug tests. This system allows companies to perform screening no matter where they are
based in a cost effective, safe and efficient manner. This year, CMM expects to perform 12,000 drug
tests through MediScreen alone.
Sales to CMM have already commenced and this new agreement will establish a mechanism to
substantially grow the sales in Australia for workplace testing. The minimum order quantities under the
agreement are as follows:
Calendar Year USD
2009 80,000
2010 160,000
2011 250,000
After 2011 250,000