9th Aug 2021 10:32
(Alliance News) - Microsaic Systems PLC on Monday said it has signed a non-binding heads of terms with an unnamed manufacturing partner to support a supply agreement with a Chinese distributor signed in early May.
Under the new agreement, production of the point of care mass spectrometry devices is set to start in Shanghai in 2021, to be used in the hospital diagnostics monitoring for the Chinese market.
Shares in Microsaic were 8.5% higher at 0.23 pence on Monday in London.
Local production is one of the requirements for the Woking-based mass spectrometry developer to secure a medical device licence in China, which is on track to be granted in 2022.
In May, Microsaic inked an agreement with a Chinese partner for the two parties to supply and market Microsaic's MS products for use in hospital diagnostics in China.
Looking ahead, Microsaic expects to generate two streams of revenue in 2022: One from the initial sale of monitoring systems; and the other from the recurring revenue share from the supply of reagents and consumables used for point of care patient monitoring.
"With the company on track to secure a China medical device licence in 2022, the move to mass production of this Microsaic equipment in China represents a significant opportunity to reduce costs and increase margins for these devices, and demonstrates our commitment to position our point-of-need technology in a broad range of key verticals within the human health diagnostics sector," said Chief Executive Officer Glenn Tracey.
By Dayo Laniyan; [email protected]
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