The contract with generics maker >URL Mutual is worth $1.5m (€1.3m) a year for >Celsis, who will provide analytical chemistry and stability testing services on Mutual's generic drugs to ensure their stability and chemical composition before market release.

Celsis has also been contracted by pharma giant >Procter & Gamble, to supply full release testing for a new product launch, including analytical chemistry, microbiology and sensory analysis services in support of new product manufacturing later this year.

This contract is expected to generate in excess of $500,000 per annum for Celsis and the combined contracts should boost revenue for Celsis' Laboratory Group, which represented 48 per cent of total group revenues in the year to 31 March 2005, but did not experience growth in the six months to September.

"We are pleased to announce that both Mutual and Procter & Gamble have chosen Celsis as their analytical services provider, demonstrating that our business strategies are working," said Jay LeCoque, Celsis CEO.

"This new agreement with Procter & Gamble also highlights the increasing synergies between our Product and Laboratory Groups. The Product Group has enjoyed an excellent relationship with Procter & Gamble for years and has more recently been working closely with them to develop customised capabilities from the Laboratory Group," said LeCoque.