Admedus Ltd (ASX:AHZ) has entered a purchasing agreement allowing it to promote its flagship ADAPT® tissue products, CardioCel® and VascuCel®, to more than 1,500 hospitals.
CardioCel and VascuCel are used to treat heart defects and for heart valve, vessel and cardiovascular repairs.
WATCH: Admedus Ltd moving up the value chain and preparing for 'pivotal' year
The purchasing agreement will last three years and takes effect from 1 April 2018.
Direct access to more than 1,500 hospitals
The purchasing agreement is with a major Group Purchasing Organisation (GPO) in the US.
It provides Admedus direct access to promote CardioCel and VascuCel to more than 1,500 hospitals who are members of the GPO’s purchasing network.
Notably, this network has an estimated purchasing power of $US35 billion.
Delivers on company’s strategy to expand market share
Wayne Paterson, CEO, said: “This agreement is a significant opportunity for Admedus and delivers on a commitment that was made at our AGM in November 2017 to expand our market share in the US through a partnership with a major compliant GPO.
“In our most recent financial report we signalled aggressive US growth targets for 2018 and this agreement strengthens our ability to achieve that.”
Admedus is one of only two parties awarded the agreement
Admedus is one of only two parties awarded a purchasing agreement to share the estimated $US5.2 million per annum spend.
This agreement demonstrates the quality of the ADAPT® line of products, which in turn highlights the future value they can generate for Admedus shareholders.