Sign up Australia
Proactive Investors - Run By Investors For Investors

Medical Australia wins OEM agreement with Pharmatel Fresenius Kabi AG

This is the third OEM agreement gained by a revitalised Medical Australia under CEO Mark Donnison and reflects strengthening of its global supply chain.  This provides an immediate revenue generation as well as a foundation for further OEM contracts.
Medical Australia wins OEM agreement with Pharmatel Fresenius Kabi AG

Sydney-based medical device manufacturer Medical Australia (ASX: MLA) snared a third original equipment manufacturer (OEM) agreement, the latest with global healthcare company Pharmatel Fresenius Kabi AG of Germany, with immediate revenue generation.

PFK, which employs 21,000 people worldwide and employs over 220 people in Australia and New Zealand, was awarded a major contract with the New South Wales Department of Health to supply all IV pumps for the state’s public hospitals.

MLA’s TUTA product is being sourced by PFK for this contract, with first revenue to be booked by MLA in the first quarter of calendar 2011.

This represents the third OEM agreement won by MLA since July 2010. 

MLA reported a record 2011 first quarter performance with sales of $2.4 million, ahead of budget.  This dis not include a contribution from Medivet which is expected in the second quarter, boosting revenues futher.

Reflecting the quality of the recent earnings growth, MLA recorded an Earning Before Interest Tax, Depreciation and Amortisation (EBITDA) to sales margin of almost 10 per cent for the first quarter. This is an indicator of the progress MLA has made in reducing its cost base and strengthening its global supply chain.

MLA is pursuing a number of additional OEM agreement which would accelerate organic growth in the current financial year. 

MLA chief executive officer Mark Donnison said “This OEM partnership represents a major growth platform for MLA. We will start to book revenue immediately through the supply agreement for the New South Wales Department of Health contract, and can comfortably accommodate PFK’s demands without any further capital expenditure."

“PFK was attracted to the strength and dependability of MLA’s global supply chain, as well as the quality of the TUTA product that we are initially supplying through this agreement. This gives us a major organic growth platform for the TUTA brand that we had not previously forecast."

MLA will shortly update shareholders on the company’s first half revenue performance.


Register here to be notified of future MLA Company articles
View full MLA profile View Profile

Medical Australia Timeline

Related Articles

June 22 2017
The device can give accurate and rapid volumetric information about all four chambers of the heart
the word antioxidant
August 15 2017
The heparin test is the firm’s lead product; however the company’s OxiChek device for oxidative stress is also gaining traction
July 26 2017
We hope this will be the first of many product launches of multiple formulations and presentations of LP-LDL as the active component in a wide range of pharmaceutical and consumer products around the world - chief executive Stephen O’Hara

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use