Shares in Belluscura PLC (AIM:BELL) were pumped 20% higher to 49.1p after the company struck a new 10-year deal for its portable oxygen concentrators with its Chinese manufacturing partner.
Shenzhen-based InnoMax Medical Technology has acquired the exclusive right to manufacture and distribute not just its X-PLOR device but also the DISCOV-R, "next-generation ambulatory dual flow portable oxygen concentrator" in China, Hong Kong, Macau and Singapore.
Belluscura will receive minimum cumulative royalties that increase annually over the minimum five-year term of the deal, as well as a share of the net profits on accessory sales.
First product registration and initial sales are expected to take place before the end of the year.
With China estimated to contain six times the number of people suffering from chronic obstructive pulmonary disease compared to the US, Belluscura chief executive Bob Rauker said this demonstrated the need for oxygen therapy in these territories.
"This agreement provides the basis for an extremely financially beneficial partnership for both companies as we jointly broaden the reach of Belluscura's next-generation technology," he said.