VentriPoint Diagnostics Ltd’s (CVE:VPT) (OTCQB:VPTDF) heart analysis technology was boosted Tuesday after its partner Ma’anshan YuTian Medical Technology Company Ltd was granted approval by Chinese regulatory authorities to sell Ventripoint's VMS (QAS-R) system in China.
The Canadian heart-focused medtech group’s Chinese partner received China Food and Drug Administration (CFDA) approval and a certificate of production for the company’s VMS QAS-R system, which is used for clinical analysis of the right ventricle of the heart.
Shares in VentriPoint soared nearly 65% to $0.18 in the OTC Markets, while it was up nearly 13% to $0.23 in the Canadian Venture Exchange.
Dr George Adams, the chief executive at VentriPoint said China represents a huge opportunity.
“We commend our Chinese partners for their diligence in achieving approval for the VMS,” said Dr Adams in a statement. “Now all 32,000 hospitals in China and its territories have access to a 2D ultrasound analytical system to accurately assess right-heart function.”
The company had earlier received Good Manufacturing Practice (GMP) certification for a manufacturing facility in Ma’anshan, Anhui Province. The factory is fully functioning and scaled to produce the VMS at a significant rate to address the Chinese market. Yutian Technology has also received the Chinese equivalent of an ISO60601 for the VMS, which allows it to be used in hospitals in China.
The company said marketing efforts in China have been cranked up and are “well underway” with the creation of a multi-channel distribution network. The medical-device market in China was pegged at over US$58 billion in 2017 and experienced 20% growth from 2015 to 2016. There are over 2,500 Tier 1 hospitals and a total of 32,000 hospitals, with over 1,000 new hospitals currently under construction.
“We are looking forward to the rapid rollout of the VMS as we have a number of key leading hospitals which have been preparing to acquire the system,” said Yutian Technology CEO Kevin Li.
Heart disease is a top healthcare issue in China, with 23% of hospital admissions related to cardiovascular conditions. This is almost twice the 13% rate in North America. In addition, it is common to have an echocardiogram prior to any surgery and so the rate of exams is much higher than the rate in the United States. As a result, China represents a large and rapidly growing market for the VMS.
It was in May 2017, that YuTian Technology made a submission to the CFDA for approval to sell the VMS in China and to certify the factory to build the VMS system.
VentriPoint's technology is aimed at identifying heart problems early on and provides medics with a more efficient and cost-effective method for evaluating cardiac volumes and ejection fractions.
-- (Updates with massive spike in share price) --
Contact Uttara Choudhury at [email protected]