Medical Australia snares master distribution agreement for MediVet products in UK

Medical Australia (ASX: MLA) has signed an exclusive master distribution agreement with MediVet Pty Ltd (MediVet) for the United Kingdom market,  representing a significant new organic revenue growth opportunity for the company.

Global animal healthcare company and original equipment manufacturer (OEM) partner MediVet has developed a ground-breaking patented stem cell regenerative medicine for the animal healthcare sector.
Medical Australia will become the sole distributor for MediVet’s products in England, Wales, Scotland and Ireland.
As the company now has both OEM and distribution agreements in place with MediVet, the deal is expected to be a major growth platform for Medical Australia outside of Australia in 2012.

The operation Will be managed by Medical Australia's wholly owned business in London by a UK Business manager, experienced and well connected in the animal healthcare market.

Mark Donnison, chief executive officer, said "we have been working with MediVet for over a year as a trusted and proven Original Equipment Manufacturing (OEM) partner. This latest agreement illustrates the value that MediVet places on its relationship with MLA, and that we are clearly delivering results."

“MLA is in good shape, and this new organic growth development is another avenue to fast track revenue growth from FY2012 onwards whilst at the same time delivering acceptable margins. We expect to announce more contract wins and supply agreements in the coming weeks.”

Given Medical Australia is MediVet’s OEM partner, the company is well placed to control the entire supply chain for these new markets, from manufacturing through to sales and distribution.

Medical Australia now expects to secure additional territories to expand its exclusive distributor status.

A veterinary practice that wants to offer the MediVet adipose stem cell process is required to purchase proprietary hardware upfront, valued at US$10,000, and then order procedure packs based on a minimum $US$2,000 order value per month.

MediVet’s product is receiving strong support in the equine market in particular, and over 200 veterinary practices in the United States now provide the product with growing sales in the Middle East and Asian markets.

Medical Australia is now actively marketing the MediVet stem cell process to veterinary clinics and equine centres throughout the UK. With over 10,000 practices operating in the region, the master distributorship presents a major future revenue driver for MLA commencing this financial year.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17624/medical-australia-snares-master-distribution-agreement-for-medivet-products-in-uk-17624.html