The Universal Biosensors Inc (ASX: UBI) share price is edging lower today. As of writing, shares in the medical diagnostics company are trading for 73 cents each, down 1.3%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.02% lower.
Today's price movement comes after the company announced another deal to distribute one of its products – this one in South Africa.
Let's take a closer look at today's news and what it means for the Universal Biosensors share price.
Image source: Getty images
What's up with the Universal Biosensors share price?
In a statement to the ASX, Universal Biosensors advised it has entered a nonexclusive agreement with Vicard SA for the distribution of its wine testing platform device, Sentia, in South Africa. The deal is for 3 years.
Vicard SA is an importer of products necessary for wine production into South Africa. It has been in operation for more than 20 years.
This is the third such deal for the Sentia product. The company recently announced distribution deals in Chile and the United States. The Universal Biosensors share price rose 6% on the former deal and fell on the latter.
Sentia is a portable, wine-testing device that delivers results in less than 60 seconds. The test measures the amount of free sulphur dioxide present in a wine product. Free sulphur dioxide needs to be present in wine for bacterial stability.
Management commentary
Universal Biosensors CEO John Sharman said:
Securing distribution in South Africa is another step forward in the commercialisation of Sentia globally. Vicard SA has 20 years of experience supplying high quality resources to the South African wine industry and there are 500 wineries which will now have the opportunity to experience Sentia.
Along with the current capability we believe the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others will add significant value to the winemaking industry. We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.
Vicard SA CEO Michael Fernandez added:
I am thrilled to be bringing Sentia to the South African wine industry. The initial reaction from my customers has been very positive and they understand the unique benefits the system offers.
Universal Biosensors share price
Over the past 12 months, the Universal Biosensors share price has increased 279%. In fact, just over the last month, the company's value has appreciated 28.6%. On 9 April, the share price went up 36% in one day after a medical-related update.
The Universal Biosensors share price has a market capitalisation of $127.8 million.
