The share price of Microsaic Systems (LON: MSYS) is gaining on Monday after it was announced that the company has signed a non-binding Heads of Terms (HoT) with a manufacturing partner.
The HoT supports the China Distributor HoT, which was announced on 4 May, for Microsaic's micro-engineered MS technology.
Under the newly signed HoT, production of the point of care MS medical device is expected to commence this year in Shanghai for the hospital diagnostics monitoring system for the Chinese market.Â
Microsaic said local production is a prerequisite to secure a medical licence for Microsaic's existing technology.
The company expects to generate two revenue streams in 2022, from the initial sale of monitoring systems and the subsequent recurring revenue-share from the supply of reagents and consumables used for point-of-care patient monitoring.
Glenn Tracey, CEO of Microsaic, commented: “With the Company on track to secure a China medical device licence in 2022, the move to mass production of this Microsaic equipment in China represents a significant opportunity to reduce costs and increase margins for these devices, and demonstrates our commitment to position our point-of-need technology in a broad range of key verticals within the human health diagnostics sector.
“We are focused on commercialisation of integrated smart AI medical devices, sample-to-result platforms, and equipment/devices with network management software capability.”
The company's shares are up at 0.214p, +1.9% currently after initially opening at 0.25p.
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