The Osteopore Ltd (ASX: OSX) share price is edging higher today on news of a distribution deal. Osteopore notified the ASX just after market open that it has landed a deal to begin distributing its products into Germany and Austria. The Osteopore share price lifted by as much as 3.6% in earlier trading, however, has since partially retreated. At the time of writing, the Osteopore share price is trading 2.63% higher at 58.5 cents.
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What's driving the Osteopore share price?
The Osteopore share price is marching higher after the company advised it has signed an exclusive distribution agreement. The deal was struck with MTG Medizintechnik Göhl (MTG) to promote and sell Osteopore products to German and Austrian markets.
Under the terms of the agreement, MTG will market Osteopore's range of products for craniofacial procedures and implants. Osteoplug, Osteoplug-C and Osteomesh products already have European regulatory approval so MTG can immediately commence with marketing the products. MTG has indicated that immediate discussions with hospitals and doctors are on the table, with no red tape standing in the way.
The distribution deal does not include minimum sales KPIs (key performance indicators) and therefore the company has not provided any guidance on sales forcasts. It's a 2-year agreement with standard termination provisions. Osteopore has stated that it will work closely with MTG to drive successful outcomes. Ultimately, this includes helping MTG to provide sales training and support sales reps on an ongoing basis. The goal is to promote Osteopore products to surgeons across Germany and Austria. Additionally, MTG already has a national sales market and is recognised for its expertise in the promotion of current and previous Osteopore products.
Osteopore as a brand has previously been exposed to the German market in the research and clinical development fields. Additional partnerships were developed in the past as a result of the Osteopore technology. Of most note was the company's first paediatric, patient-specific skull reconstruction in a 11-year-old patient in 2008 at the Munich University Hospital.
About Osteopore
Osteopore is an Australian medical services and biotechnology company. Although based in Australia, most of the company's research and development (R&D) is actually conducted out of Singapore. Osteopore's manufacturing also takes place in Singapore.
The company specialises in the manufacture of innovative regenerative implants on a commercial scale. It combines 'biomimetic tissue' science with proprietary 3D printing and materials technology. Using these processes, Osteopore produces medical implants designed for both tissue and bone reconstruction and restoration.
Known as 'bioresorbable implants', these products provide a 'scaffold' for bone regeneration, dissolving over time to leave only natural bone tissue behind. Osteopore states that it manufactures these implants to address "unmet clinical needs and improve patient outcomes".
What did management say?
Osteopore CEO, Khoon Seng Goh, made this statement:
We are pleased that after over 12 years of clinical cooperation with German surgeons and researchers, we can now provide Osteopore products for wider use in German hospitals and treat German patients.
More on the Osteopore share price
Osteopore listed on the ASX in September 2019 at a price of 62.5 cents. Today, the Osteopore share price is trading at 58.5 cents.
The last 12 months or so have been highly volatile for Osteopore shares. At its all-time high, the Osteopore share price rose to $1.49 late last year before plummeting to a 52-week low of 28 cents in March this year. This low did, however, coincide with the broader market crash associated with the onset of the coronavirus pandemic.
Investors have been bullish on the company's shares in November, with the Osteopore share price rising a little more than 10% so far this month including today's gains. It will be interesting to watch how the company's sales and share price perform as this latest distribution deal kicks into play.
