Medical Australia to receive immediate revenue from Smith & Nephew distribution agreement

Medical Australia (ASX: MLA) has received a major vote of confidence in the company's products, with a distribution agreement signed with global player Smith & Nephew.

The agreement was signed with the Canadian arm of medical device company, and the result for Medical Australia is immediate revenue generation.

What the milestone demonstrates is Medical Australia's competency for global expansion without the need for further capital expenditure.

The agreement will see Smith & Nephew distribute TUTA irrigation products on an exclusive basis throughout Canada.

Mark Donnison, chief executive officer of Medical Australia, commented "We have been working on developing our presence in the North American market for some time and we are delighted to have an agreement in place with such a strong global player as Smith & Nephew.

“For a company such as Smith & Nephew to have confidence in the TUTA product is a coup for MLA and demonstrates the growing market appeal of our brands."

The significance of the agreement for Medical Australia is a continuation in organic growth over the medium term, which is poised to continue into the future with the company pursuing additional distribution agreements, OEM opportunities and new supply agreements.

Smith & Nephew is an industry leader in more than 100 markets across its three main Global Business Units - Orthopaedic Reconstruction and Trauma, Endoscopy and Advanced Wound Management.

Combined these businesses jointly offer over 1,000 product ranges, with Smith & Nephew’s global revenue in the six months to 2 July 2011 over $2 billion.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18872/medical-australia-to-receive-immediate-revenue-from-smith-nephew-distribution-agreement-18872.html