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Hemagen Diagnostics Inc. plans to use the Cellular Products Inc. facilities in Buffalo that it is acquiring to make raw materials for some of its diagnostic products, the Massachusetts biotechnology firm said.

Hemagen plans to use Cellular Products' 15,000-square-foot facility to make raw materials for several of its major products, including tests for cytomegalovirus (CMV) and Chagas, said Carl Franzblau, the firm's president.

Franzblau said Hemagen could reap considerable cost savings over time by producing viral materials at the Cellular Products facility at 872 Main St., which includes two Biological Level 3 laboratories that are equipped for large-scale production of viruses that afflict mammals and for safely processing highly-contagious pathogenic materials.

Franzblau said Cellular Products, which Hemagen is acquiring for $600,000 in a bankruptcy proceeding, has been profitable and produced a positive cash flow during each of the last two quarters. The company's sales have been running at an annual rate of nearly $1.8 million.

Hemagen also expects to use Cellular Products' research capabilities to develop and eventually manufacture new clinical diagnostic products, Franzblau said. Hemagen said it expects to retain all of Cellular Products employees.

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