Osprey Medical inks new deal with GE Healthcare

Osprey Medical (ASX: OSP) will partner with US giant GE Healthcare to distribute its life saving medical devices across much of the globe.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Yesterday morning, Osprey Medical Inc (ASX: OSP) announced a strategic alliance with US giant GE Healthcare. The Osprey share price started trade yesterday strongly in response to the news before retreating to 4.4 cents per share at Thursday's close. 

What did Osprey announce?

Under the new agreement, GE Healthcare will exclusively distribute Osprey's products in Europe, Asia, Russia, Turkey, the Middle East, Africa and Central Asia.

The announcement reports that Osprey's DyeVert contrast minimisation devices will complement GE Healthcare's X-ray contrast media. Together, the technology will assist doctors in addressing the rising problem of acute kidney injury (AKI) following interventional coronary angiograms in patients with chronic kidney disease.

Osprey's technology is the only FDA-cleared medical device approved for reducing patient contrast exposure.

The 4-year agreement will see GE Healthcare commercialise Osprey's DyeVert portfolio. On average, the DyeVert technology reduces the amount of contrast that reaches the kidney by 40%, without reducing the image quality.

A word from management

In regard to the new alliance, Osprey CEO Mike McCormick said:

We are pleased to be partnering with GE Healthcare to be commercialising our products in global markets to address the rising problem of AKI following heart imaging procedures in patients with poor kidney function.

CEO of GE Healthcare's pharmaceutical diagnostics business Kevin O'Neill stated:

GE Healthcare and Osprey share a similar goal in improving patient outcomes. Both our product portfolios and educational efforts, which are aligned wit cardiology guidelines for AKI minimisation, offer interventional cardiologists the opportunity to safely image patients by reducing the risk of AKI.

Quarterly report highlights

On Tuesday, Osprey released its quarterly cash flow report for the period ending 30 June 2020.

The company reported a successful capital raising of $12.8 million from its entitlement offer and shortfall placement, and an additional $1.9 million from the US Government in the form of a pandemic recovery loan, a COVID-19 relief program for small US-based companies.

Additionally, Osprey reported a 7% fall in unit sales, due to COVID-19's impact on its worldwide heart procedures. However, as at 30 June, the company still maintained a cash balance of $14 million.

About the Osprey share price

After a strong initial start to the day on Thursday, rising more than 6%, Osprey's share price retreated.

The stock closed the day flat, trading for 4.4 cents, where it remains at the time of writing. Year-to-date, the Osprey share price is up 46.7%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were nervous this Friday, ending the week on a sour note.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Market News

Where to invest $5,000 into ASX 200 shares this month

The team at Bell Potter is bullish on these names. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

8 ASX 200 shares hitting multi-year highs today

These shares have defied the trend, hitting new price milestones amid a day in the red for the ASX 200.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EOS, Evolution Mining, Renascor, and Woodside shares are jumping today

These shares are ending the week on a high. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Accent, Cettire, Ioneer, and Pro Medicus shares are dropping today

These shares are ending the week in the red. What's going on?

Read more »

A group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »

Rising share price chart.
Broker Notes

Why this exciting ASX 200 share could rise almost 50%

Bell Potter has good things to say about this biopharmaceutical company.

Read more »