24th Sep 2021 10:36
(Alliance News) - Microsaic Systems PLC on Friday named Jiangsu Henzhihe Technologies Co Ltd as the manufacturing partner that it signed non-binding heads of terms with back in May, as it revealed the next stage of their partnership.
Microsaic has now signed a manufacturing, supply, and service agreement with Jiangsu to achieve an open direct China presence.
Microsaic is an Surrey-based company focused on developing and commercialising micro-engineering chip-based mass spectrometry equipment, while Jiangsu is a hardware, software and application development company in pharmaceutical and clinical diagnostic analysis markets.
Shares in Microsaic were up 5.5% at 0.23 pence in London on Friday.
Under the agreement, Jiangsu will act as manufacturer, integrator, and service centre for Microsaic's Chinese partnerships, while the companies collaborate to access growth opportunities in the market.
Microsaic in May said it had inked an agreement with a Chinese partner to supply and market its mass spectrometry products for use in hospital diagnostics in China. Shanghai-based Jiangsu will be the deal's middle-man.
Through Jiangsu, production assembly is expected to commence by the end of this year, which is a prerequisite to securing a Chinese medical license. Microsaic said it should secure a China medical device licence in 2022.
Jiangsu will also establish a local presence for Microsaic, with an addressable market of 7.9 million beds across 33,000 hospitals.
Microsaic tipped that it will have multiple revenue streams in time from sales of its mass spectrometry units, franchise services and sales of reagents, which are substances added to a system to see if a chemical reaction occurs.
Once the medical license in China has been secured in 2022, the companies will target 100 units per annum for each therapeutic drug monitoring sector over the next two to three years. Jiangsu confirmed to Microsaic that it can meet this demand globally.
"With the company on track to secure a China medical device licence in 2022, developing the capability with local partners for mass production of Microsaic equipment in China represents a significant opportunity to reduce costs and increase available margins for these devices," said Microsaic Chief Executive Glenn Tracey.
"With a focus on commercialisation of sample-to-result platforms, and equipment with network management software capability and later artificial intelligence software, we look forward to providing further updates on production and distribution to the market as they arise."
By Josie O'Brien; [email protected]
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