InspireMD Signs Distribution Agreement with South Korea, Stock Moves Higher

InspireMD & Solvit Medical

InspireMD (NYSEAMERICAN:NSPR) is back making headlines.

I’ve written a lot about this medical device company lately, but can you blame me? InspireMD has experienced a number of ups and downs on the stock market this year. For the past two months, the company has witnessed drops in its stock price, only to increase a few days later. What I’m hoping is that today’s announcement will allow the NSPR stock to gain the consistency that it is in dire need of.

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What Happened Today?

On February 22, InspireMD disclosed that it has signed an exclusive sales, distribution and marketing agreement with one of the leading medical device distributors in South Korea. More specifically, the Israel-based healthcare company signed an agreement that allows Solvit Medical the exclusive right to advertise and peddle InspireMD’s CGuard Embolic Protection System (EPS).

This is pretty significant news. Why? Well, for starters, it was only on January 30 that the EPS system was featured in a live case transmission at the Leipzig Interventional Course. It appeared investors were so excited about this advancement that the stock shot up nearly 20% at one point during the trading day.

My point is is that the stock was benefiting just from the EPS system being featured in a live case transmission. So, what’s going to happen to InspireMD’s stock now that a leading South Korean company has obtained the right to actually sell the system? My guess is good things are to come. So far, it appears my guess is right. On the news, InspireMD shot up more than 10% on the NYSE American exchange. As of this writing, the company is trading at $4.54, which puts the stock up $0.49, or 12.10%.

What Do We Know About The Deal?

Due to the agreement, Solvit Medical now has the right to both fund and manage the reimbursement and registration submissions for InspireMD’s EPS in South Korea. Further, under the terms of the distribution, sales, and marketing agreement, Solit has to buy a pre-selected number of EPS systems annually. They will have to purchase the minimum number as soon as commercial sales for the system commence in South Korea. If all goes as planned, South Korea is forecasted to see the sale of the system in Q2 of 2019.

The Takeaway

Personally, I have a lot of faith in this company. I want to believe good things are on the horizon, however, if I’ve learned anything from following this company, it’s that nothing is ever a guarantee. The company itself seems to be making headways in terms of the products it creates, but it’s the stock that always seems to be struggling to keep up with its competitors on the market. If I were you, I’d keep an eye on the company’s stock over the next couple of weeks – I know I will.

Featured Image: Depositphotos/© depositedhar