Concepta has signed an agreement with SinoPharm, the largest state-owned pharmaceutical company in China, with annual sales of over £23 billion, on local stock holding and logistics throughout the whole of China.
Concepta said in the announcement on Thursday that it will receive regular quarterly orders for myLotus meters from SinoPharm, with 50% upfront payment and 50% paid on delivery, through the end of the year, to be renewed on a yearly rolling basis. As part of the agreement, SinoPharm will coordinate the logistics and distribution of units with Concepta’s China office executing the marketing plan.
Concepta also said that it was not possible to fulfil any orders in Q1 2018, including the previously announced order from ShanDong WeiHai HaiChen Pharmaceutical.
Erik Henau, CEO of Concepta said: “I am thrilled to announce this agreement with SinoPharm. This key strategic deal clearly reflects our revised strategy and will provide us with regular orders and upfront payment from a highly-respected and well-placed trade partner in the market.
“The deal offers us greater flexibility in the Chinese market as stock will be readily available rather than having to be manufactured to order. This will facilitate the development of sales across the provinces and enable the Company to focus on securing repeat business through its distributors.
“It is a strong endorsement of the quality of our products that Concepta is able to engage with organisations of SinoPharm’s stature. They have a strong ongoing programme of working with foreign companies and this relationship is reflective of the focus we now have of working with targeted partners in China. We are confident that this focus on establishing a few key successful distribution channels will deliver strong revenue growth in 2018.”