31 August 2017SONIC HEALTHCARE WINS AUSTRALIAN NATIONAL BOWEL CANCER SCREENING CONTRACT
Sonic Healthcare Limited ("Sonic") (SHL.AX) is pleased to announce that it has signed a Deed with the Australian Government for immunochemical faecal occult blood test supplies and services for the National Bowel Cancer Screening Program (the Program). This was the outcome of a competitive open market Request for Tender process.
The National Bowel Cancer Screening Program, an Australian Government initiative since 2006, invites eligible Australians aged 50-74 years to screen for bowel cancer using a simple test, at no cost to the individual. Following the Government's 2014 Budget investment of $95.9 million to accelerate the expansion of the Program, it is estimated that when fully rolled out, around 4 million eligible Australians will be invited annually, compared to around 2.8 million in 2017.
Australia has one of the highest rates of bowel cancer in the world, with around one in 23 Australians developing bowel cancer during their lifetime. If detected early, 9 out of 10 cases are treatable. The Program aims to continue to reduce deaths from bowel cancer through early detection of the disease.
Sonic will manage the provision of the specimen collection kits, as well as conducting the pathology testing using state-of-the-art technology at three major Sonic laboratories around Australia, in Sydney, Brisbane and Perth. Sonic expects the contract to add approximately A$90 million to revenue over the initial three-year term.
Sonic´s CEO, Dr. Colin Goldschmidt said: "Sonic Healthcare is honoured to have been selected as the pathology partner for the Australian Government's National Bowel Cancer Screening Program. This appointment reflects our commitment to quality pathology and our deep experience in cancer prevention, testing and diagnosis. We look forward to partnering with the Australian Government to deliver and enhance this important population-based screening program, which will continue to prevent bowel cancer and save the lives of Australians."
The contract commences on 2 January 2018 for an initial 3-year term, with the possibility of two further extensions, each for two years, at the Australian Government Department of Health's sole discretion.
For further information regarding this announcement, please contact:Dr Colin Goldschmidt Chris Wilks
Sonic Healthcare Sonic Healthcare
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