Osprey Medical (ASX:OSP) has signed Independent Sales Agency (ISA) agreements with Access Medical, Consolidated Medical Supplies and DriKot Medical that will expand its sales coverage in the US.
The new agreements cover Southern California and Nevada (Access Medical), Arizona (Consolidated Medical Supplies) and Minnesota, Iowa, South Dakota, and North Dakota (DriKot Medical), with a total of eight sales representatives.
Osprey said the companies are "well placed" to support its US objectives because they have extensive experience selling heart-related products for cardiac surgery, electrophysiology and cath lab making.
Osprey's dye reduction and monitoring technologies are designed to help physicians minimise dye usage and monitor the dose of dye real-time throughout the procedure. The company said its DyeVert System reduces contrast while maintaining image quality in a self-adjusting easy-to-use design that monitors dye usage.
Under the two-year agreements, Osprey said it will ship to and invoice hospitals in the ISA’s area and pay commissions based on total revenues. Osprey said it is in "active discussions" with several other ISAs with the goal of further expanding its geographic coverage.
The new ISAs build on those previously announced with BioCore covering eight states in the Northeast US.
"The ISA strategy provides Osprey with a dual-pronged sales approach across the US, via both ISAs and direct sales reps and the agreement has been structured to leverage the key advantages of both the ISA and direct sales strategy," said the company in a statement.
"Practically, Osprey’s direct sales reps will continue to focus on the regions in which they operate, however they will also work closely with the ISAs to help convert potential customers in new regions," it said.
“We are excited to partner with Access Medical DriKot Medical and Consolidated Medical as part of our US expansion strategy," said Osprey CEO Mike McCormick.
"While we have a strong presence and continue to grow sales in the regions where our direct sales force operates, our partnership with ISAs will help strengthen our market presence in the states in which we currently do not have a presence.
"It can be a costly process to enter new areas and the introduction of the ISA model will enable us to expand across the US in the most cost-effective and sustainable way. I look forward to adding more ISAs in other regions as we continue to expand while managing our cash burn closely.”