The Universal Biosensors, Inc (ASX: UBI) share price is rising today after the company signed a Canadian distribution agreement for its wine testing platform.
At the time of writing, the Universal Biosensors share price is up 1.96% trading at 52 cents.
The deal represents an interesting step towards diversified commercialisation for Universal Biosensors. The company is primarily a medical diagnostics company, focused on the research, development, and manufacture of in-vitro diagnostic test devices for consumer and professional point-of-care use.
The company produces technology that tests blood glucose levels, which has enabled it to expand into the viticulture market through its new wine testing platform, Sentia.
Sentia can accurately test the levels of glucose, fructose, malic acid and other monosaccharide carbohydrates in wine, which is already proving appealing for international winemakers.
Universal Biosensors meets Vine to Vintages
Universal Biosensors announced today it has entered into a nonexclusive distribution agreement with Canadian company Vines to Vintages Inc for the distribution of its wine testing platform device.
The agreement is for a three-year term and contains standard renewal and termination options available to both parties. The Canadian distribution agreement arrives two months after Universal Biosensors signed a US distribution deal with Enartis, with more than 7,000 potential customers.
The company outlined to shareholders in its 'Future of UBI' report in February that it planned to "move away from defining ourselves as an R&D company with long lead times and expensive research programs". Since then, the Universal Biosensors share price has risen by more than 10 cents.
What did management say?
Universal Biosensors CEO John Sharman welcomed the deal, saying:
The launch of Sentia into Canada is another positive step in the commercialisation of Sentia globally. Vines to Vintages is well represented in all of Canada's wine regions and has access to 700 wineries.
The deal includes an initial commitment to purchase Sentia devices and strips which will be delivered over the course of the next few weeks.
Mr Sharman said the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others would add "significant value" to the winemaking industry.
We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.
Universal Biosensors share price snapshot
The Universal Biosensors share price has increased more than 245% in the past year. It's up 28% this month, 19% this calendar year and 250% against the broader healthcare sector, although healthcare is hardly a sector Universal Biosensors is limited to anymore.
