Multi-million dollar order secures G Medical’s entry into US commercial market
G Medical has received its first committed purchase orders from the United States totalling around US$21.85 million.
Mobile and e-health company G Medical Innovations (ASX: GMV) has secured a multi-million dollar purchase order with US healthcare company Hygea Holdings Corp for its medically-certified digital devices.
The purchase order covers G Medical’s Prizma medical smartphone case and its Vital Signs monitoring system (or G Medical Patch) over a 24-month term commencing in April for aggregate payments of up to $30.5 million.
Prizma turns a smartphone into a mobile medical monitor capable of measuring a range of vital signs, with the added bonus of being able to store data and share it with healthcare professionals.
The modular G Medical Patch also measures vital signs, and automatically presents them in a call centre or hospital setting to assist in the remote diagnosis of patient complaints and conditions from pre-hospitalisation through to post-discharge, home-based settings.
Both devices will be provided to clinics and practices owned by Hygea and its US subsidiaries AllCare Management Services and Palm Medical Group.
Under the terms of the order, payments will be made by Hygea on a monthly basis and will vary between approximately $125,000 and $1.86 million.
G Medical chief executive officer Dr Yacov Geva said the purchase order marks the company’s commercial entry into the US market ahead of its proposed NASDAQ listing later this year.
“We are proud to partner with a well-respected and industry-acknowledged multinational with a long-standing history of providing high quality patient care solutions,” he said.
“We are very proud that Hygea has acknowledged our medical devices and services as being integral to the future generation of modern and complete patient care systems and service provisions.”
Company activity
The Hygea deal follows G Medical’s plans to begin producing its devices from an overseas facility.
Earlier this month, the company announced it was awaiting the delivery of all final device componentry in preparation for the start of production from its new manufacturing plant in Guangzhou, China.
The plant received regulatory certification from the US Food and Drug Administration, European CE and China’s Food and Drug Administration in October.
The first Prizma and Vital Signs units are expected to be delivered from the plant to customers before March.
Mr Geva said the company expects strong growth for 2019, with revenue streams anticipated to increase as G Medical further expands its global presence.
At mid-morning, shares in G Medical Innovations were up 10.17% to $0.325.