Partner Article

US deal bolsters new firm

A fledgling software firm is gearing up to handle close to £3m in new business - including a lucrative deal in the US - after just five months of tradin

Total Lab was spun out of Newcastle-based life-science software group Nonlinear Dynamics last October and is already well on the way to becoming a multi-million pound enterpris

The company makes specialist software used for research in the life-sciences, pharmaceutical, food and education sectors and has already won a major contract with an American part

In a deal potentially worth up to £1.3m (US$2m), the firm will supply its software to a Wisconsin-based technology firm which will use it as part of its re-agent kits that scan for cancer biomarker

The arrangement with the business is also expected to be followed by an additional contract with the American firm worth around £600,000 (US$1m) for Total Lab’s products that are related to ‘western blot’ – an analytical technique used to detect protein

Meanwhile, the company expects to generate up to £575,000 (US$900,000) in revenue over the next three years through three collaboration projects in which Total will re-badge its software for its clients.

The company also expects to more than triple its direct sales revenue- which currently stands at the £120,000 mark –over the next two year

Total Lab is headed up by Bob Marchmont whose involvement with Nonlinear Dynamics goes back two decades to when the firm’s only employee was the current chairman,

Will Dracup. The new company’s launch followed restructuring at Nonlinear and came closely after the inception of its other Newcastle-based spin-out, Biosignature

Mr Marchmont said: “We have already secured our first contract with a company in the States and this is a big deal for us. “Our business plan is to triple direct sales and our next focus will be into emerging markets such as pharmaceuticals, therapeutics and diagnostics.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .