[source: Belluscura]
Belluscura (BELL ) said a new agreement with InnoMax Medical Technology is expected to more than double its manufacturing capacity while accelerating its international expansion.
The Company, which develops medical devices such as lightweight and portable oxygen enrichment technology, has signed a manufacturing agreement with InnoMax Medical Technology, to manufacture its X-PLO2R® portable oxygen concentrator across China.
InnoMax is a joint venture between MaxNerva Technology Services Limited, which is an affiliate of one of the leading contract electronics manufacturers in the world, and the National Center for the Advanced Medical Devices (“NMED”), which is located in Shenzhen in China.
NMED is the first national manufacturing innovation center in Shenzhen and is also the only innovation center set up by the Chinese government within the field of medical devices.
The agreement, which has an initial duration of three years, is expected to more than double Belluscura’s manufacturing capacity throughout next year and enable it to accelerate its international expansion by opening up access to the Asian markets ‘in 2023 and beyond.’
The commercialisation and distribution in Asia are expected to occur no later than 1Q23 and Belluscura intends to manufacture both the company’s next generation X-PLO2R® oxygen concentrator and the next portable oxygen concentrator in its portfolio, the DISCOV-R™.
Belluscura’s devices are designed to address a market need: According to the World Health Organisation (“WHO”), over 1 billion people in the world suffer from chronic respiratory issues.
Shares in Belluscura were trading 13.64% higher this morning at 112.5p following the news.
Overall, the global oxygen therapy market size is expected to grow at a significant CAGR of 10.12% from 2021 to 2026 to be worth $18.55 billion by 2026. The global portable oxygen concentrators market is forecast to be worth $2.76 billion by 2026 - that’s a CAGR of 14%.
In China alone, nearly 100 million people suffer from chronic obstructive pulmonary disease (“COPD”). This is 400% larger than the total US COPD population, and it is estimated to be the third leading cause of death in China.
Beyond this market, there are an estimated 50 million cases of COPD in India and over 5 million people in Japan suffering from COPD.
Robert Rauker, CEO of Belluscura plc, commented: “Manufacturing X-PLO2R® products at the national innovation center for medical devices with an affiliate of the world’s leading electronics manufacturing company is transformational for the Group. The agreement will more than double our manufacturing capacity and will provide access to the significantly larger Asian market - in China alone there are five times the COPD cases than in the US.”
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