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Microsaic Systems (MSYS) shares are gaining on Friday after it announced the signing of an agreement with Jiangsu Henzhihe Technologies (HZH).
Microsaic, a developer of point-of-need mass spectrometry (MS), has signed a manufacturing, supply, and service agreement following the announcement of a Heads of Terms for its micro-engineered MS technology on May 4. Under the agreement, HZH will provide integration and service support for Microsaic's operations in China.
HZH will act as the manufacturer, integrator, and service centre to support distribution and prospective OEM partnerships in China. It is a recently incorporated firm with experience working with MS in China and manufacturing other analytical devices.
The MS hospital diagnostic monitoring equipment production in China is expected to begin before the end of 2021 to support the Chinese distributor through local production and service support, which are pre-requisites to securing a medical license.
“The Agreement establishes a local presence for Microsaic, accelerating the Company's growth opportunity in China,” Microsaic said in its statement.
In addition, the company said multiple revenue streams are expected, consisting of the sale of MS TDM units, franchise services and sales of reagents.
Once the companies have secured a medical license in China in 2022, HZH and the Microsaic estimate a target rising to 100 units per year for each therapeutic drug monitoring sector over the next two to three years.
Glenn Tracey, CEO of Microsaic Systems plc, commented: “With the company on track to secure a China medical device licence in 2022, developing the capability with local partners for mass production of Microsaic equipment in China represents a significant opportunity to reduce costs and increase available margins for these devices.
“This demonstrates our commitment to position our point-of-need technology in a broad range of key verticals within the human health diagnostics sector.”
Microsaic shares opened up the session well above Thursday's close at 0.25p. The stock price is currently trading at 0.236p, up 7.45%.
Microsaic Systems shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are MSYS shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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