NEW YORK (GenomeWeb News) – Accelr8 Technology said Monday that it has extended a technology evaluation agreement with Novartis through Sept. 30, 2011.
Novartis will install Accelr8's BACcel system at its facility to "expand development capacity," Accelr8 said in a statement. It added that the firms will continue to negotiate and intend to agree on business terms for a formal collaboration by Sept. 30. The new agreement also includes an option for Novartis to extend project support through Jan. 2, 2012.
Novartis began evaluating the BACcel system, a rapid bacterial diagnostics system, in June 2010. Though it didn't name Novartis as the partner at that time, Accelr8 subsequently disclosed that the partner was Novartis in a filing with the US Securities and Exchange Commission.
As the firms have extended the evaluation pact over the past year Accelr8's shares have continued to rise. For the first half of 2011, the Denver-based firm's stock rose more than 300 percent.
In early Monday trade on the American Stock Exchange, shares of Accelr8 were up 12 percent at $4.15.