Medical Tech company Imricor (ASX:IMR) continued its rally from March lows with a new distribution agreement this morning.
Amid a flurry of 4C filings for the June quarter, Imricor’s announcement made it one of the few small caps this morning with a trading update that moved the needle.
The company announced a deal with multinational electronics company Philips, which will see the Dutch conglomerate sell Imricor’s product as part of a sales portfolio for products that have achieved Europe’s CE Mark regulatory approval.
IMR shares rose by another 21 per cent in morning trade, as the stock hit a new 2020 high of $2.12 after falling to around 80c at the height of the COVID-19 crisis.
Imricor (ASX:IMR) share price chart
Sales boost
The distribution deal is for Imricor’s Advantage-MR EP Recorder/Stimulator System, which allows a physician to use both an EP recording system and a cardiac stimulator during an interventional magnetic resonance imaging (MRI) procedure.
The non-exclusive agreement “enables Philips to utilise their extensive sales force to drive iCMR lab adoption, providing a single point of purchase for these customer sites”.
Imricor CEO Steve Wedan said having the backing of a multinational to help drive lab adoption of the interventional cardiovascular magnetic resonance (iCMR) procedure is a “major milestone” for the company.
Having a distribution partner will also help the company focus on its core strengths — “supporting utilisation, growing our portfolio of consumable devices and expanding our indications for use”, Wedan said.
The deal with Philips was struck on three-year terms, with automatic 12-month rollovers thereafter unless cancelled by either party.