The Universal Biosensors Inc (ASX: UBI) share price has spent the day in negative territory today despite the company announcing a new distribution deal.
During the early afternoon trade, the medical diagnostics company's shares are swapping hands for 69 cents, down 1.4%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,350 points, up 0.4%.
What did Universal Biosensors announce?
In today's statement, Universal Biosensors advised it has entered into an exclusive distribution agreement with Grapeworks NZ Limited.
The arrangement will see Universal Biosensors supply its wine testing platform device, Sentia for the New Zealand market. The deal will last for 5 years, provided initial and minimum annual purchase volumes are met. Furthermore, the contract will be subject to the usual customary conditions with attached renewal options available to both parties.
The latest agreement follows the company's progress in delivering its Sentia products across global markets since March 2021.
During the last couple of months, Universal Biosensors has secured distribution deals in Australia, the United States, New Zealand, Canada, Chile and South Africa. This has provided the company with access to over 14,000 wineries, reflecting strong demand for its product.
What did management say?
Universal Biosensors CEO John Sharman welcomed the outcome, saying:
Grapeworks is UBI's exclusive distribution partner for Sentia in Australia, so for them to extend our agreement to cover New Zealand's 500+ wineries demonstrate a strong financial commitment and belief in the future success of Sentia.
Grapeworks NZ managing director Malcolm Wilson went on to add:
Sentia has been well received by our Australian customers. We have been doing our due diligence on an expansion into New Zealand and believe that Sentia is a great product to spearhead our launch.
Universal Biosensors share price review
The Universal Biosensors share price has performed considerably well, gaining close to 240% over the past year. The company's shares recently reached a multi-year high of 84.5 cents earlier this month.
Based on the current share price, Universal Biosensors commands a market capitalisation of $119 million, with 177 million shares outstanding.
