- Analytica (ALT) has entered into a joint venture agreement to manufacture, distribute and market its PeriCoach product in Asia
- The PeriCoach pelvic floor exercise system is designed for the treatment of stress urinary incontinence, a condition which one in three women worldwide suffer
- The joint venture with Hebei NACOL Bio-Technology Co and Shijiazhuang Biosphere will see the system distributed across China, Macau, Hong Kong and Taiwan
- The agreement furthers Analytica’s strategy to bring PeriCoach into global markets, building upon growth in the Middle East, and pursuing other partners in North America, Europe and Southeast Asia outside of China
- Analytica is up 50 per cent, trading at 0.5 cents
Analytica (ALT) has entered into a joint venture agreement to manufacture, distribute and market its PeriCoach product in Asia.
Analytica’s PeriCoach pelvic floor exercise system is designed for the treatment of stress urinary incontinence, a condition from which one in three women worldwide suffer.
The joint ventures with Hebei NACOL Bio-Technology Co (Nacol), holding 65 per cent interest, and Shijiazhuang Biospher, with 15 per cent interest, will see the system distributed across China, Macau, Hong Kong and Taiwan.
The joint venture agreement contains mechanisms to assist Analytica in maintaining its 20 per cent shareholding until Nacol has made a total share contribution of RMB 10 million cash (A$1.99 million).
As Analytica is entitled to a 15 per cent royalty income from joint venture sales, it is not permitted to share further in the joint venture dividends, which will be distributed to the other joint venture parties in proportion to their shareholdings.
PeriCoach is made up of a medical device, smartphone app and the PeriVault, the largest pelvic floor muscle exercise database in the world. The technology helps women correctly perform pelvic floor exercises, known as kegels, while the device and app are being used.
Data from PeriCoach patients shows that majority of women do not know how to engage these hidden muscles when they first use the device.
The joint venture will register PeriCoach with the Chinese Food and Drug Administration (CFDA) as a class II medical device. With this clearance, PeriCoach can become a prescription treatment, covering the hospital network in the North China area.
The agreement furthers Analytica’s strategy to bring PeriCoach into global markets, building upon growth in the Middle East, and pursuing other partners in North America, Europe and Southeast Asia outside of China.
Under the joint venture, Nacol is responsible for the registration of the joint venture company, obtaining the necessary regulatory approvals, including a business license and product approval licence, manufacturing, distribution and marketing of the PeriCoach. It is also responsible for providing all the necessary funding for the future development of the product.
Analytica will retain ownership of the PeriCoach intellectual property and be entitled to continue to develop and exploit it independently outside the agreed territories.
PeriCoach will be distributed through the existing network of hospitals and postpartum organisations serviced by the joint venture partners. The partners have also collaborated with a leading postpartum care service platform in China, with coverage of 100 cities and more than 30,000 clinical professionals.
The company says China has an ageing population — among which 31 per cent of older women experience urinary incontinence — but only 25 per cent of those currently seek medical assistance.
Additionally, 15 million babies are born each year in China, which has seen the postpartum rehabilitation industry grow to 3.95 billion yuan per year (around A$0.047 billion) in 2018, with a compound annual growth rate of 43.9 per cent.
“China is leading the world in recognising the need for effective postpartum care and is facing the challenge of caring for its large aging population by using the PeriCoach system to assist women with managing incontinence,” said Analytica Chairman, Dr Michael Monsour.
“PeriCoach is a proven cost effective solution that will dramatically improve quality of life and burden of care for women including the use of costly diapers. We look forward to the continued exploration of our strategic options to expand the availability of PeriCoach globally.”
Analytica is now looking to make online sales in the U.S., U.K., Australia and New Zealand in the near future.
Analytica is up 50 per cent, trading at 0.5 cents at 12:40 pm AEDT.