Why the OptiScan (ASX:OIL) share price is climbing higher

The Optiscan Imaging Ltd (ASX: OIL) share price is up 4.35% today after a positive announcement on a product order.

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The Optiscan Imaging Limited (ASX: OIL) share price is climbing higher today after a positive announcement on a product order.

At the time of writing, the Optiscan share price is up 4.3% higher to 12 cents. In comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.1% at 6,932 points.

Quick take on OptiScan

Based in Australia, OptiScan develops endomicroscopic imaging technologies for medical markets.

Its confocal imaging technology can be used for both cancer screening and tumour margin detection in cancer surgery. The company's technology enables real-time, in vivo imaging at the cellular level, providing a digital biopsy. This benefits patients by allowing medical professionals to monitor the early-stage of disease, and reduce waiting times for pathology results.

OptiScan is used by leading research institutions and hospitals in North America, Europe, Asia and Australia.

What did OptiScan announce?

OptiScan advised that it received orders worth $350,000 from its partner, Carl Zeiss Meditec AG (CZM), to support its Convivo system.

CZM is a European medical technology company that employs cutting edge solutions in diagnosing and treating patients. The Convivo system allows real-time feedback on tissue microstructure through digital pathology consultation, powered by OptiScan's miniaturised point scanning confocal technology.

While OptiScan did not release further details on the contract, it noted that the latest order would expand its current revenue streams.

What did management say?

OptiScan CEO and chair Darren Lurie welcomed the progress, adding:

We are also very pleased that OptiScan continues to diversify its revenue streams and cash flows.

Receipts in the December 2020 quarter included $570k from the final payments for the 2 (two) FIVE2 (ViewnVivo) systems sold to China based customers, the BioMedTech Horizons Program grant to support the University of Melbourne's Melbourne Dental School trial and payments from CZM.

OptiScan share price snapshot

The OptiScan share price has been tracking higher over the past 12 months, reaching as high as 16.5 cents in December.

After the company's shares hit a low of 1.3 cents last March, this is a gain of 823% on the current price.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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