30th Aug 2023 10:30
(Alliance News) - Belluscura PLC on Wednesday announced its entrance into an exclusive licence, marketing and distribution agreement with Chinese manufacturing partner InnoMax Medical Technology Ltd.
Shares in Belluscura shot up 18% to 48.50 pence in London on Wednesday.
The London-headquartered medical device developer said InnoMax, based in Shenzhen in southeastern China, now has exclusive rights to manufacture and distribute Belluscura's X-Plor portable oxygen concentrator in China, Hong Kong, Macau and Singapore.
The deal also will cover its ambulatory dual flow portable oxygen concentrator Discov-R, once both devices are registered in the above territories.
"I am very excited to build and strengthen our relationship with InnoMax," commented Chief Executive Officer Bob Rauker. "This agreement provides the basis for an extremely financially beneficial partnership for both companies as we jointly broaden the reach of Belluscura's next-generation technology."
The agreement has a ten-year duration and is effective from October 1. Under its terms, Belluscura will receive annually increasing minimum cumulative royalties on licensed products over the ten-year period. It will also receive a share of net profits from sales of product accessories.
Belluscura added that the deal will remain exclusive for at least five years, but it may grant InnoMax a non-exclusive licence for the remainder of the ten-year period if it does not achieve minimum expected sales quantities.
Belluscura expects the first product registration and initial sales to occur during the last three months of 2023.
By Emma Curzon, Alliance News reporter
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