Admedus (ASX:AHZ) has entered a ‘Purchasing Agreement - Cardiovascular Surgery, Vascular Repair’ with a Group Purchasing Organisation (GPO) in the US.
The company said the three-year agreement takes effect from 1 April and will give it direct access to promote the ADAPT tissue products, CardioCel and VascuCel, to more than 1,500 hospitals that are part of the GPO’s purchasing network. The network has an estimated purchasing power of $US35B.
Admedus said it is one of two parties awarded a purchasing agreement to share the estimated $US5.2M annual spend.
Admedus’ ADAPT tissue products, used to treat congenital heart defects and those in need of heart valve, vessel and cardiovascular repairs, enables native cells to successfully grow and differentiate through the entire repair process.
According to CEO Wayne Paterson, “This agreement is a significant opportunity for Admedus and delivers on a commitment that was made at our AGM in November 2017 to expand our market share in the US through a partnership with a major compliant GPO.
“In our most recent financial report we signalled aggressive US growth targets for 2018 and this agreement strengthens our ability to achieve that.”
Admedus Chief Operating Officer David St Denis also welcomed the agreement, “The GPO we have entered into agreement with is a leader in health care delivery and their patient-focused strategy closely aligns with our own, ensuring physicians have access to clinically-superior products that enable them to make a real difference in the lives of their patients.
“Admedus welcomes this agreement and looks forward to moving up the supply chain and claiming a greater share of the cardiovascular surgery and tissue repair market in the US.”