The deal will grant Sinopharm’s MedTech subsidiary exclusive distribution rights for the range of Avita’s medical devices, including regenerative treatments for burns, chronic wounds and skin defects, Avita said.
Shares in Avita rose approximately 2% in early day trading, up to $1.54 as of 11:11 a.m. EST.
“Sinopharm MedTech have a proven track record of building up strong recurrent sales of medical devices, and we greatly look forward to supporting their efforts in growing the China market. Avita has already done a lot of the hard work in China and now is the time to build on this and work with a strong partner to address the clear need for our regenerative medicine products,” Avita CEO Adam Kelliher said in prepared remarks.
Avita said it has been active in the Chinese market for 5 years, with a focus on plastics and repigmentation.
The company said it chose state-owned Sinopharm in part due to the reach of the company. Sinopharm is involved in the distribution, retail sales, R&D and manufacturing of various healthcare-related products.
Sinopharm Group Med-Tech GM Qiu Shiru said in a press release that Avita’s RCcell is a “significant milestone product in the field of regenerative medicine, as it not only heals physical wounds, but also supports mental health. We regard it as a great honor to be the exclusive distributor of ReCell in China, as it aligns with our business philosophy of ‘Caring for Life, Caring for Health’.”