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OpenDNAâs stock price jumped over 20% yesterday (25 February 2019) after the company secured a supply channel agreement with pharmaceutical wholesaler and aggregator, NNM Services. The agreement has been signed with respect to the marketing and distribution of products from NNM suppliers into China.
Under the terms of the binding agreement, NNMâs skincare, Vitamins, Minerals, Supplements (VMS) and Health & Wellbeing products will be marketed and sold through the companyâs RooLife online shop platform in China. In return, OpenDNAâs RooLife will reportedly receive the commission on the sale of all products and fees for marketing services for the sale of these products into China.
OpenDNA Chief Executive Officer, Mr Bryan Carr, commented âThe Groupâs partnership with NNM Services will provide an avenue for Australian wellbeing and health care business. This will enable the beauty and healthcare brands to be able to meet the significant demand from Chinese consumers for Australian vitamins, skincare, minerals and supplements (VMS).â
With this new supply agreement in place, OpenDNA Limited (ASX: OPN) has leveraged its network of pharmaceutical suppliers thereby strengthening its product portfolio to be marketed and sold on the Companyâs RooLife platform which represents the market place and avenue for Australian producers to sell into China. It outlines the companyâs strategy to sell high-quality and organic Australian products to Chinaâs rapidly growing consumer market.
The company told that it has elected to launch with VMS, skincare and health products based on the high demand for these product ranges, with the annual revenue for this market segment estimated at US$30billion in 2017 and with projected annual compound growth of 10% through to 2025. Moreover, it forecast the entire Health and Wellbeing market, inclusive of Traditional Chinese Medicine (TCM), to reach US$60 billion by 2020.
NNM Services is a recently established pharmaceutical aggregator that holds a wholesale partnership with International and Australian pharmaceutical suppliers. It will reportedly operate as RooLifeâs supply channel and provide ongoing business development services to OpenDNA on a commission basis by sourcing products and supply agreements for products to be sold on the RooLife platform.
The management advised that OpenDNA is well positioned to understand consumer buying habits and provide personalized shopping experience on the back of an enhanced combination of online services and its hyper-personalization Artificial Intelligence System (AIS).
Both NNM Services and OpenDNA have already started working with various pharmaceutical wholesalers and manufacturers. The company commits to provide a further update to its shareholders, if any, or as and when it executes additional agreements.
After surging 20.588% yesterday, i.e., 25 February 2019, OPN stock price continued to rally today. At the time of writing, 26 February 2019 (12:07 PM AEST), the stock has gone up by 4.878% to trade at $0.043. Over the past three months, OpenDNAâs stock has witnessed a positive performance change of 17.14%. The market capitalisation of the company stands at $8.48 million as at 26 February 2019.
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