The Universal Biosensors, Inc. (ASX: UBI) share price is rising higher during mid-morning trade. This comes after the medical diagnostics company announced its first sales into Europe.
At the time of writing, Universal shares are up 7.32% to 66 cents.
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What's driving the Universal share price higher?
Investors appear pleased with the company's latest update, with management hinting revenue is on track for 2021 targets.
According to this morning's release, Universal welcomed the first sales of its Sentia device and free Sulphur Dioxide (SO2) test strips into Europe. The products were sent to companies operating in France, Italy, Germany, Spain, Portugal and Switzerland.
Universal entered into a non-exclusive agreement with Vinventions SA to market and trial Sentia in France and Italy. In addition, the company made its first sales of Sentia to AZ3Oeno SL Enologia Viva for the Spain and Portugal markets. Universal noted that both distributors are seeking a more in-depth evaluation of Sentia's performance, before committing to new deals.
In Switzerland, Universal revealed it has completed its first sales and partnered with Swiss leading manufacturer, XC Oenologie Sarl. The distribution agreement is valid for a term of 3 years and contains minimum purchase volumes.
Management commentary
Universal Biosensors CEO, John Sharman hailed the company's progress, saying:
The launch of Sentia into the main European markets is a significant step forward for the company. Between Vinventions, AZ3Oeno and XC Oenologie Sarl, we have access to more than 26,000 wineries across Europe.
Universal first supplied Sentia products during March 2021 and given the global COVID 19 pandemic, lockdowns and associated difficulties, sales during the first three months has been excellent. Our business is forecasting to hit $1 million of sales before the end of September. There are currently 19 distributors trialling Sentia devices across Europe. We are confident that over the next few months additional distribution agreements and sales will be made in Europe.
XC Oenologie Sarl CEO, Xavier Chevallay went on to add:
I am excited to be bringing Sentia into the Swiss market. I'm confident its speed of results and ease of use will be well received. XC Oenologie Sarl, is proud to start this collaboration with UBI and looks forward to representing Sentia with which we have carried out very convincing tests.
Over the last 12 months, the Universal share price has rocketed by more than 200%, with 2021 performance above 50%.
