TEXAS: Belluscura plc (AIM: BELL), a leading medical device developer focused on lightweight and portable oxygen enrichment technology, has signed a manufacturing Master Supply Agreement (“MSA”) with InnoMax Medical Technology, Ltd (“InnoMax”) to manufacture the X-PLO2R® portable oxygen concentrator in the People’s Republic of China.
This agreement will more than double the Company’s manufacturing capacity next year and enable us to accelerate our international expansion by opening up the Asian markets in 2023 and beyond.
InnoMax is a joint venture between MaxNerva Technology Services Limited (http://www.maxnerva.com/) and the National Center for the Advanced Medical Devices (“NMED”) located in Shenzhen, China. NMED is the first national manufacturing innovation center in Shenzhen and is also the only innovation center set up by the Chinese government in the field of medical devices.
Maxnerva Technology is an affiliate of one of the leading contract electronics manufacturers in the world. Commercialisation and distribution in Asia are expected to occur no later than Q1 2023. Belluscura plans to manufacture both the next generation X-PLO2R® oxygen concentrator and the next portable oxygen concentrator in its portfolio, the DISCOV-R™.
Under the MSA both parties intend to execute statements of work, which will specify the terms and conditions by which InnoMax will assist the Company in the design, manufacture, assembly, repair and/or distribution of product. The agreement has an initial duration of three years. Unless either party notifies the other, the agreement automatically renews annually thereafter.
According to the World Health Organisation (“WHO”), more than 1 billion people in the world suffer from chronic respiratory issues. The global oxygen therapy market size is expected to grow at a significant CAGR of 10.12% from 2021 to 2026 to be worth $18.55 billion by 2026. The global portable oxygen concentrators market is forecast to be worth $2.76 billion by 2026, a CAGR of 14%.
Nearly 100 million people in China have chronic obstructive pulmonary disease (“COPD”). This is 400% larger than the US COPD population. It is estimated to be the third leading cause of death China. Beyond China, there are an estimated 50 million cases of COPD in India and over 5 million people in Japan suffering with COPD.
Robert Rauker, Chief Executive Officer, Belluscura plc, commented: “Manufacturing X-PLO2R® products at the national innovation center for medical devices with an affiliate of the world’s leading electronics manufacturing company is transformational for the Group. The agreement will more than double our manufacturing capacity and will provide access to the significantly larger Asian market – in China alone there are five times the COPD cases than in the US.”