Belluscura Regulatory News (BELL)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Belluscura plc

("Belluscura" or the "Company" or "Group")

Belluscura Enters Groundbreaking Exclusive License and Royalty Generating Agreement

Belluscura licenses its proprietary technology in China

in a deal valued at $55m in minimum royalties over the term of the license

LONDON, U.K., PLANO, TX, U.S. and SHENZHEN, CHINA (30 August 2023). Belluscura plc (AIM: BELL), a leading medical device developer focused on lightweight and portable oxygen enrichment technology, announces that it has entered into an Exclusive License, Marketing and Distribution Agreement ("Agreement") with its global manufacturing partner, InnoMax Medical Technology Ltd ("InnoMax").

InnoMax, headquartered in Shenzhen, China, has acquired the exclusive right to manufacture and distribute Belluscura's award winning X-PLOR® portable oxygen concentrator in China, Hong Kong, Macau and Singapore ("the Territories"). In addition to the X-PLOR, the agreement will also include the DISCOV-R™, the Company's next generation, ambulatory dual flow portable oxygen concentrator, when registration is received in the Territories for both devices.

Under the terms of the ten-year Agreement, effective from 1 October 2023, Belluscura is to receive annually increasing minimum cumulative royalties over the term of the Agreement. In addition to receiving royalties on licensed products (subject to annually increasing minimum amounts), Belluscura will receive a share of the net profits on sales of accessories. 

The Agreement will be exclusive for a minimum of 5 years, though if minimum sales quantities are not achieved, Belluscura and InnoMax can mutually agree to grant InnoMax a non-exclusive license for the remainder of the term. Minimum cumulative royalties over the term of the Agreement will therefore range from $27.5m if the license is converted to non-exclusive from year 6 and up to $55m in cumulative royalties if the license remains exclusive for the entire term.

Belluscura, under the terms of the Agreement and to further promote Belluscura technology in China, will perform sales and marketing activities on behalf of InnoMax in the Territories. Both parties will financially contribute to these associated marketing activities.

The first product registration and initial sales are expected to take place in Q4 of this year. Belluscura will continue to sell and distribute its products outside the Territories.

Today's announcement follows news earlier this month that Belluscura has received purchase orders for over 6,500 of its DISCOV-R portable device for the US market, which the Company plans a controlled roll out of in Q3 and into 2024 to meet growing demand for the device amid substantial interest from medical device distributors, retailers, patients and durable medical equipment providers, among others.

Adam Reynolds, Chairman Belluscura plc, commented:

"It is a tremendous accomplishment for the team at Belluscura to have partnered with InnoMax, a world class organization."

Bob Rauker, Chief Executive Officer, Belluscura plc, commented:

"I am very excited to build and strengthen our relationship with InnoMax. An estimated 100 million people suffer from COPD in China alone, approximately six times the number of patients in the US, demonstrating the need for oxygen therapy in China and associated Territories. 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."

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About InnoMax

InnoMax is a leading manufacturer and service provider of high-end medical devices in China, mainly engaged in the design, development, manufacturing and sales of in vitro diagnostic equipment, medical imaging devices, medical oxygen generating devices, respiratory AIDS, ophthalmic devices, intelligent rehabilitation devices and epidemic prevention products. Relying on the National Innovation Center For Advanced Medical Devices and Foxconn Technology Group, a global leader in electronics manufacturing, InnoMax is committed to "creating a global open high-end medical device manufacturing platform of innovation and industrial integration".

About Belluscura plc (www.belluscura.com)

Belluscura is a UK medical device company focused on developing oxygen enrichment technology spanning broad industries and therapies. Our innovative oxygen technologies are designed with a global purpose: to create improved health and economic outcomes for the patients, healthcare providers and insurance organisations.