The Universal Biosensors, Inc. (ASX: UBI) share price is in negative territory today despite announcing a distribution deal. In early morning trade, the medical diagnostics company is swapping hands for 71 cents, down 2.7%.
What did Universal Biosensors announce?
Investors are driving the Universal Biosensors share price lower today. This comes despite the company's latest positive announcement.
According to this morning's release, Universal Biosensors advised it has signed a non-exclusive distribution agreement with Wine & Beer Supply.
Founded in 2015, Wine & Beer is a rapidly growing business that provides an array of products to beverage companies. This includes bottles, tasting glasses, carriers, shippers, corks, AND vineyard supplies in addition to other items used by winery, brewery, and cidery industries.
The new deal allows Wine & Beer Supply to provide distribution channels for Universal Biosensors' wine testing platform device, Sentia. This includes coverage over the eastern part of the United States. Importantly, this deal also sets up Sentia for a global launch.
Furthermore, the distribution agreement will run for a period of 3 years and contains standard renewal and termination options.
Management commentary
Universal Biosensors CEO, John Sharman welcomed the deal, saying:
Securing another distributor in the USA is a positive step in the commercialisation of Sentia globally. Wine & Beer Supply has a strong presence in the USA, particularly in the eastern half of the USA and will give Sentia greater access to the 11,500 wineries across the country.
Along with the current capability we believe the possibility of Sentia's future testing capability for Glucose, Fructose, Malic Acid and others will 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.
Wine & Beer Supply CEO, Dave Robertson added:
We are delighted to partner with Sentia in the United States. We have received positive feedback from our customers and believe Sentia will make a significant impact in the wine testing market in the USA.
About the Universal Biosensors share price
In the past 12 months, the Universal Biosensors share price has gained over 300%. The share price is also up more than 60% year-to-date. Additionally, the company's shares reached a multi-year high of 84.5 cents yesterday following another signed distribution agreement with a Singularity SpA.
On valuation grounds, the Universal Biosensors commands a market capitalisation of around $129.6 million, with 177.5 million shares outstanding.
