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Concepta scores distribution deal with Chinese pharma titan
(WebFG News) - Women's healthcare company Concepta said on Thursday that it has signed a contract with SinoPharm for the stock holding and distribution logistics for the Chinese market.
The distribution agreement will see SinoPharm, the largest state-owned pharmaceutical company in China, coordinate the logistics of deliveries of myLotus monitors with Concepta's China office.
MyLotus monitors were developed by Concepta to help women pinpoint their ovulation so as to assist with conception.
Erik Henau, chief executive of Concepta, said: "The deal offers us greater flexibility in the Chinese market as stock will be readily available rather than having to be manufactured to order. This will facilitate the development of sales across the provinces and enable the Company to focus on securing repeat business."
The agreed contract with SinoPharm will run to 31 December 2018 and be renewed on a yearly basis.
"It is a strong endorsement of the quality of our products that Concepta is able to engage with organisations of SinoPharm's stature. They have a strong ongoing programme of working with foreign companies and this relationship is reflective of the focus we now have of working with targeted partners in China," said Henau.
In markedly less positive news, the company reported that a previously announced order from ShanDong WeiHai HaiChen Pharmaceutical has not been completed as "payments have not been forthcoming and will no longer be relied upon."
Going forward, Concepta aims to establish links with a number of 'gold' distributors who will introduce myLotus to the market before distribution expands more broadly.
As of 1044 BST, Concepta PLC's shares were up 22.91% at 7.68p.