LONDON, UK: Belluscura plc (AIM: BELL), a leading innovator in medical devices specializing in lightweight and portable oxygen enrichment technology, has forged a significant Exclusive License, Marketing, and Distribution Agreement with global manufacturing partner InnoMax Medical Technology Ltd (“InnoMax”).
InnoMax, headquartered in Shenzhen, China, has secured the exclusive rights to manufacture and distribute Belluscura’s acclaimed X-PLOR® portable oxygen concentrator across China, Hong Kong, Macau, and Singapore, collectively referred to as “the Territories.” This collaboration also encompasses Belluscura’s forthcoming DISCOV-R™, an ambulatory dual-flow portable oxygen concentrator, upon territorial registration for both devices.
Effective from October 1, 2023, this ten-year agreement introduces escalating minimum cumulative royalties over its duration. Alongside royalties on licensed products (subject to increasing minimum thresholds), Belluscura will participate in net profits from accessory sales.
The Agreement boasts a minimum 5-year exclusivity period. However, if minimum sales targets aren’t met, both companies can amicably transition to a non-exclusive license for the remainder of the term. Consequently, cumulative royalties over this period will range from $27.5 million if the license shifts to non-exclusive from year 6, to up to $55 million if exclusivity endures.
In addition to these terms, Belluscura will champion its technology in China by undertaking sales and marketing responsibilities on InnoMax’s behalf in the Territories. Both parties will financially contribute to these associated marketing endeavors.
Initial product registration and sales are anticipated in Q4 of this year. Belluscura will continue to market its products beyond the Territories.
This announcement follows Belluscura’s recent news of securing purchase orders for over 6,500 DISCOV-R portable devices for the US market. The company intends to methodically roll out these devices to meet surging demand, strengthening its presence in medical device distribution networks.
Adam Reynolds, Chairman of Belluscura plc, praised the partnership, saying, “The collaboration with InnoMax, a world-class entity, marks a remarkable milestone for Belluscura.”
Bob Rauker, CEO of Belluscura plc, expressed excitement about the partnership’s potential: “Our expanded relationship with InnoMax holds tremendous promise. China alone houses an estimated 100 million COPD patients, six times the US figures, underscoring the demand for oxygen therapy. This agreement sets the stage for a mutually lucrative partnership as we jointly expand the reach of Belluscura’s advanced technology.”