Uscom Limited gets a green card for the sale of Type II Medical Devices in China through its wholly owned subsidiary company Uscom China.
On Monday, 25 March 2019, Uscom Limited (ASX: UCM) announced that it has been granted a Type II Medical Device Business Registration Certificate that allows Uscom China to direct sell all type II medical devices into the Chinese market on the approval of National Medical Products Administration (NMPA).
It will see the commercialisation and direct selling of the company’s type II medical devices including Uscom BP+, USCOM 1A, and SpiroSonic digital ultrasonic spirometers through Uscom China. This new certification provides a platform for the direct sale of these devices following the completion of these regulatory approvals.
Executive Chairman of Uscom, Associate Professor Rob Phillips stated that “The company is not just selling products into China, rather it is building a long-term business in China based on a new business model. Following this certification, the company can now import, support and sell medical devices independently as it brings its seven new products to the Chinese market.”
Earlier the company use to sell its devices in the Chinese market through importation and registered selling agents to master distributors. Now, with the receipt of the Type II Medical Device Business Certificate and the National Medical Products Administration (NMPA) approval, Uscom can directly work with the master distributors to sell type II medical devices such as ultrasound devices, MRI and X-Ray devices and respiratory anaesthetic and emergency medical devices. It allows the company to more efficiently and comprehensively access the Chinese market and proceed to a more direct and profitable national sales model.
Uscom China now has a registered Beijing office with a Business License a Foreign Trade Registration Record, a VAT General Taxpayer Qualification Form, a Certificate of Customs Declaration and full capital and trading bank facilities. While all current Uscom business in China is based on USCOM 1A sales, Uscom currently has USCOM 1A in a re-approval cycle, and the Uscom BP+ and the SpiroSonic series of devices in their initial Chinese NMPA regulatory process.
Associate Professor Rob Phillips concluded that the company is in the process of building on-ground resources to expand operations in the China market. Uscom aims to expands its current distribution in order to establish a wide-reaching sales organisation that can cover the expansive geography of China. his new business model provides us with the transparency of the company’s distribution, sales and pricing in China, critical aspects of its growing China business.
Health care sector company, Uscom is focused on developing and marketing advanced non-invasive cardiovascular and pulmonary monitoring technologies to assist in the care of patients with cardiovascular and pulmonary diseases. These diseases are increasingly prevalent and posing significant health care and economic challenges for China’s 1.4 billion population.
UCM last traded at $0.155 with a market capitalisation of $21.33 million as at 25 March 2019. Over the past 12 months, the stock has witnessed a negative performance change of 35.42% despite a surge of 29.17% recorded in the past three months.
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