The Medical Developments International Ltd (ASX: MVP) share price has charged higher this morning following the release of a positive announcement.
At the time of writing the healthcare company's shares are up almost 4% to $5.29.
What was announced?
This morning Medical Developments International announced that it has reached an agreement with Mundipharma for the exclusive distribution rights of its key Penthrox pain management product in Australia.
According to the release, the agreement will see Mundipharma provide its salesforce and marketing experience, whereas Medical Developments International will continue to maintain relationships within the key ambulance channel and support Mundipharma with their marketing endeavours.
The agreement contains minimum volumes which guarantee current turnover in Australia but with significant forecast upside.
Medical Developments International's CEO, John Sharman, believes this is a great deal for the company.
He said: "This is an exciting deal for MVP because Mundipharma has a respected presence in the pain market with broad sales force coverage across Australia. This presence in the field is expected to lead to impressive sales growth in the short to medium term, particularly within General Practitioner and Hospital channels."
Mundipharma Australia and New Zealand's managing director, Jane Orr, was equally pleased with the deal.
She said: "Options for pain relief are limited in many clinical settings, particularly GP procedure rooms, so we welcome the opportunity to help address this important clinical need. Mundipharma has provided medicines for the management of pain and worked collaboratively with healthcare professionals to provide education on pain management for more than 20 years in Australia, so Penthrox is an ideal fit for our business."
Finally, Medical Developments International's chairman, David Williams, revealed that the company hopes this deal shows "international distributors the upside that is possible with a strong sales force."
Elsewhere in the healthcare sector on Monday, the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has dropped lower after the U.S. FDA delayed its PDUFA date for its SCENESSE product and the Starpharma Holdings Limited (ASX: SPL) share price is higher after signing a second oncology agreement with AstraZeneca.
