Wound Management Technologies (OTC:WNDM) said Monday that Fort Smith, Arizona-based healthcare services company Golden Living has added CellerateRX to its list of preferred products approved for use within its network.
Shares of Wound Management rose 13.04 percent to reach 26 cents each today on the OTC, or over-the-counter market, as investors praised the news.
The agreement is part of Wound Management’s long-term goal to penetrate the professional healthcare markets globally. The company said it expects to sign more deals with other major healthcare system clients that will further build CellerateRX's position in the industry.
Golden Living provides services for the elderly and disabled including nursing home care, rehabilitation therapy, hospice care and home health services. It staffs more than 40,000 workers, and has in its care roughly 30,000 patients daily.
Wound Management's core product, CellerateRX, can be used in all the stages of the wound-healing process. It helps cuts, scraps, blisters, burns as well as diabetic ulcers by using collagen to speed up the time it takes to heal wounds.
Cleared as a medical device for all types of wounds except for third degree burns, and reimbursed by Medicare Part B, the product provides the essential benefits of the collagen protein to a wound immediately, where other forms of native collagen require time for the body to break down the collagen for use in the wound healing process.
In people with compromised health or circulation, the difference in wound healing time can be significant.
"Being added to the formulary list at Golden Living is an important imprimatur for CellerateRX," COO Bryant Gaines said in a statement.
"Our flagship product will now be a choice in their over 300 living centers including skilled nursing locations, as well as in their 68 hospice and home health locations. With our acquisition of Juventas LLC and its established sales force, we will be able to educate and establish sales quickly at each Golden Living Facility."
A formulary is a list of preferred and commonly prescribed prescription drugs. These drugs are chosen by a team of doctors and pharmacists because of their clinical superiority, safety, ease of use and cost.
CellerateRx, which is available in both powder and gel forms and is manufactured on a contract basis, has multiple target markets, and is distributed through five channels, including through partners such as the Military Shopping Channel, as well as through government initiatives, major healthcare service providers, biotech distributors and the international market.
Last month, Wound Management said it would acquire Juventas in an all-stock deal in an effort to boost revenues.
Fort Worth, Texas-based Juventas' products are used primarily by medical specialists in both surgical, non-surgical therapy and regenerative medicine. The company operates a nationwide distributor network.
Under the terms of the deal, Juventas owners would receive 12.5 million Wound Management shares as well as the ability to earn additional shares based on revenue targets, increasing the share consideration to 22.5 million.
Wound Management is an emerging commercial-stage company with its primary products in the $5 billion advanced wound care market. The company has a patented resorbable bone wax line that is in the late stages of development.