Span Diagnostics Ltd has informed that the Company has promoted a new Company namely Span Nihon Diagnostics Pvt. Ltd (SNKD) under the joint venture agreement signed with Nihon Kohden Corporation of Japan (NKC).

Nihon Kohden Corporation (NKC) is Japan's leading manufacturer, developer and distributor of medical electronic equipments with subsidiaries in the USA, Europe and Asia and distributors in nearly every country in the world.

Under the deal, SNKD will manufacture High Quality Reagents for Hematology Analyzers for distribution and sale in India under a license agreement with NKC.

SNKD will also set up its manufacturing facilities at Sachin (Surat) in the state of Gujarat. The manufacturing operations are expected to start in September 2008.

Further, Span will have an exclusive distribution rights for sale of the products in India. The agreement will be concluded before the commencement of manufacturing operations and will provide for tenure of the agreement and other matters.

On receipt of FIPB approval, equity stake of Span will be 45% with NKC holding remaining 55% of the equity. On SNKD starting its manufacturing operations, the existing technology agreement between Span and NKC will be terminated.

Span Diagnostics Limited provides diagnostic products to the pathology and clinical laboratories in India. The company has twin alliance with NKC, distribution of their Hematology Analyzers in India and tie-up for Technology for manufacture of Reagents calibrated to their instruments; at its manufacturing facilities at Sachin (Surat).

The stock closed today at Rs 81.50, up 3% compared with previous close of Rs 80. It touched an intraday high of Rs 82.30 and low of Rs 76.25.