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- Meditech company Osteopore (OSX) has seen its share price skyrocket after signing a non-exclusive, two-year U.S. distribution deal
- The deal will see U.S. company Bioplate market, promote and sell Osteopore’s patented 3D-printed bio-resorbable products to its U.S. network
- Specifics of the deal are thin on the ground, with less than $5000 worth of sales so far and no quarterly sales forecast received from Bioplate as of yet
- However, the deal marks an important step as Osteopore seeks to expand its distribution footprint and underlying revenue base, which is currently heavily Asia-centric
- The company’s products are already approved in the U.S. under its Food and Drug Administration 510(k) clearance, so the sales agreement will expedite Osteopore’s commercialisation strategy going forward
- Osteopore’s share price jumped so sharply off the back of the news that trading was temporarily suspended by the ASX, pending an explanation
- While the price has come down markedly from the mid-morning high, Osteopore is still trading 116.25 per cent higher at 86.5 cents per share
Meditech company Osteopore (OSX) has seen its share price skyrocket after signing a non-exclusive, two-year U.S. distribution deal.
U.S. company Bioplate is an established market leader in providing cranial closure and bone fixation systems for neurosurgery around the world. The deal will see Bioplate market, promote and sell Osteopore’s patented 3D-printed bio-resorbable products to its U.S. network.
The deal
Specifics of the deal are thin on the ground at this point, with less than $5000 worth of sales so far and no quarterly sales forecast received from Bioplate as yet.
The deal covers only select territories within the U.S.; namely California, Arizona, Texas, Ohio, Wyoming, Indiana and Puerto Rico.
While Bioplate will cover all technical, educational and training support for the products, Osteopore will offer help in driving product adoption and sales generation.
The future
The deal marks an important step as Osteopore seeks to expand its distribution footprint and underlying revenue base, which is currently heavily Asia-centric.
The company’s products are already approved for craniofacial application in the U.S. under its Food and Drug Administration 510(k) clearance, so the sales agreement will expedite Osteopore’s commercialisation strategy going forward.
Osteopore Chief Executive Officer, Khoon Seng Goh, says the agreement is a big step for the company.
“The current bone graft substitute market is worth around US$4 billion (approximately A$5.784 billion), and sales of permanent implants are estimated at over US$100 billion (around A$144.6 billion) annually.”
Osteopore Chief Executive Officer, Khoon Seng Goh
“With a large portion of this opportunity sitting within the U.S., penetrating this region is a major strategic objective for the business,” he added.
Osteopore’s share price jumped so sharply off the back of the news that trading was temporarily suspended by the ASX, pending an explanation from the company.
While Osteopore’s clarification downplayed the original release somewhat, the news is still very positive overall.
While the price has come down markedly from the mid-morning high, Osteopore is still trading 116.25 per cent higher at 86.5 cents per share as at 1:25 pm AEST.
