MicroPort Medical (00853) Enters into Distribution Framework Agreement with Otsuka to Distribute Group's Medical Devices

Original Title: MicroPort (00853) Enters into Distribution Framework Agreement with Otsuka to Distribute the Group’s Medical Device Products Source: Zhitong Finance Network

(Zhitong Finance APP News) MicroPort (00853) announced that on December 15, 2020, the company entered into a distribution framework agreement with Otsuka to continue appointing Otsuka’s subsidiaries and affiliates as distributors for the group’s medical device products in certain countries or regions covered by Otsuka’s business, for a term of three years ending on December 31, 2023.

The announcement stated that, given Otsuka’s extensive distribution network in the countries or regions where it operates, leveraging such distribution channels to enhance the sales of the Group’s products would be beneficial to the Group. Furthermore, it is not feasible for the Group to establish its own distribution networks in those countries solely for the purpose of distributing its products, as this would incur substantial costs and consume significant corporate resources. Therefore, the optimal approach is to utilize the distributors’ established networks and their services. As certain distribution agreements entered into with the distributors are set to expire on December 31, 2020, entering into a master distribution framework agreement enables the Company to continue engaging the distributors to provide distribution services.