Microsaic Systems (LON: MSYS) share price rallied on Tuesday after the company announced it has signed a non-binding Heads of Terms with a Chinese partner.
The Heads of Terms details the agreement for the companies to collaborate to supply and market Microsaic's micro-engineered MS technology for use within a point of care medical device monitoring system for hospital diagnostics in the Chinese market.
Under the agreement, the first application will monitor psychiatric therapeutics, with further monitoring applications to follow.
Once a final agreement is completed with the Chinese partner, Microsaic expects to generate two streams of revenue, from the initial sale of monitoring systems and the recurring revenue-share from the supply of reagents and consumables used for monitoring.
The two companies will now negotiate the terms of the proposed assembly and sale of the monitoring equipment.
Microsaic anticipates it will secure a medical device licence in 2022, although Microsaic's technology is expected to have production capability in China later this year, which will support product testing and validation for regulatory approval.
Glenn Tracey, CEO of Microsaic Systems plc, commented: “The proposed agreement clearly represents a significant opportunity for us to demonstrate our commitment and capacity to position our point-of-need technology in a broader range of key verticals, such as human health.
“Microsaic is specifically targeting screening and monitoring across a range of markets and current equipment is already established, thus enabling further opportunities in future patient-centric diagnostics.”
Microsaic's share price closed just over 13.04% higher on Tuesday, at 0.260p per share.
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