GCIBelluscura's X-PLOR portable oxygen concentrator greenlit for Chinese market
() , a leading portable oxygen concentrator (POC) developer to treat COPD patients, has achieved another major milestone.
Indeed after combining best-in-class medical technology with resilient supply chain infrastructure, commercial acumen and growth capital, said today that it had received regulatory approval to begin selling its X-PLOR POC in China - the world’s largest COPD market with almost 100m sufferers reflecting relatively high smoking and air pollution levels.
Moreover, a newly designed aluminium sieve for the device will result in a longer usable life, lower input costs and importantly a 50% increase in gross margin.
Clearly this is tremendous news and provides a bright green light for 's manufacturing partner Innomax to kick off production. Here Innomax will pay a minimum royalty and a share of profits - with Belluscura similarly entering negotiations with several domestic distributors. More broadly the AsiaPac POC market is estimated to grow to almost $1bn over the next 6 years.
That said, it hasn’t been all Xmas gifts and jingle bells.
In light of delays in completing the pending £5.8m acquisition and obtaining the above Chinese approval, FY23 EBITDA guidance was said to be "marginally below management expectation", albeit "prospects for 2024 remain unchanged". In fact, with the £3.3m raised in Oct'23, together with anticipated funds held within , the combined group should "have sufficient working capital to meet its growth plans through to becoming cash flow positive".
In the meantime, has been focusing on its new, rapidly expanding and higher-margin Direct to Consumer proposition, where revenues have nearly tripled in the first 3 months, yielding a 70%+ gross margin.
Additionally, marketing, advertising and operating spend has been cut in order to preserve resources, which has impacted top line growth - although these Q4 deferred sales are likely to be made up in early 2024.
Elsewhere, the new DISCOV-R POC is set for launch in Feb’24, with full US commercial rollout in March and Q3’24 in China.
Plus, CE and UKCA marks for the X-PLOR are expected to be granted in Q2’24, enabling to begin negotiations with UK and European distributors.
CEO Bob Rauker, commenting: "The approval in China, Singapore and Hong Kong are the first steps in leveraging the Innomax agreement to expand in the ASEAN region and to distribute our POCs in new markets, enhancing the lives of those with COPD and building share in the process."
"After two years of testing, developing and refining our products, the Board is very confident that Belluscura is well placed to take advantage of the significant opportunities it has in 2024 and beyond.”
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