MEDIGUS Ltd/S ADR (NASDAQ: MDGS) is having an overwhelmingly strong start to the trading session this morning after the company announced that it has entered into a new distribution agreement. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The distribution agreement;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for ahead.
MDGS Runs For The Top On Distribution Agreement
As mentioned above, Medigus is having an incredibly strong day in the market today after announcing that it has entered into a distribution agreement. In a press release issued early this morning, the company announced a distribution agreement with MELEKIRMAK that covers Turkey, Azerbaijan and Georgia. Under the terms of the agreement, which took effect as of May 1st, MELEKIRMAK is required to purchase approximately EUR 1 million in MDGS Ultrasonic Surgical Endostapler (MUSE™) equipment over the term of the 5 year agreement.
In a statement, Ozan Akin, President at MELEKIRMAK, had the following to offer:
The addition of MUSE™ to our product portfolio allows us to meet the preferences of both patients and physicians by offering a more cost-effective and minimally invasive option for treating GERD… MUSE™ addresses an unmet need in long-term treatment for GERD by addressing its root cause, making it a very valuable extension to our offerings.
The above statement was followed up by Chris Rowland, CEO at MDGS, here’s what he had to offer:
Similar to the profile of GERD in other Western populations, its prevalence in Turkey is comparable – upward of 23%i, with higher risks for females and older individuals… We are excited to provide a treatment solution to this addressable market that may be more attractive than surgery or lifelong medication for patients suffering from GERD.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of MEDIGUS, the news proved to be overwhelmingly positive. After all, the new distribution agreement will drive strong revenue for the company ahead. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:47), MDGS is trading at $1.44 per share after a gain of $0.32 per share or 28.29% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MDGS. In particular, we’re interested in following the story surrounding the company’s new distribution agreement and work to continue to commercialize the MUSE system. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!