LONDON (Alliance News) - Concepta PLC on Thursday said that it signed a logistics agreement with pharmaceutical company SinoPharm to distribute its fertility monitors across China.
The UK healthcare company said that under the deal it will get regular quarterly orders for myLotus meters from SinoPharm, with 50% upfront payment and 50% paid on delivery.
SinoPharm, which has annual sales of over GBP23.0 billion, will coordinate the logistics and distribution of myLotus while Concepta’s China office will execute the marketing plan.
Concepta said that the contract will run to the end of 2018 and will be renewed on a yearly rolling basis thereafter.
In addition, the company said that it was not able to fulfil any orders in the first quarter due to previous product delays. This included an earlier order from ShanDong WeiHai HaiChen Pharmaceutical Co Ltd. The delay for the GBP600,000 order for 6,200 myLotus meters occured following a labelling-quality issue with Concepta's manufacturer in China in December last year.
Looking ahead, Concepta said it will focus on establishing agreements with a select number of "gold" distributors, working closely with these distributors to ensure the success of the introduction of myLotus into the market.
"I am thrilled to announce this agreement with SinoPharm. This key strategic deal clearly reflects our revised strategy and will provide us with regular orders and upfront payment from a highly-respected and well-placed trade partner in the market," said Chief Executive Erik Henau.
"We are confident that this focus on establishing a few key successful distribution channels will deliver strong revenue growth in 2018," Henau added.
Concepta shares were up 16% at 7.25 pence on Thursday in London.
