Valeritas Holdings Inc (NASDAQ: VLRX) is skyrocketing in the market today with the stock doubling in value so far. The gains are the result of news that the company has entered into a distribution agreement surrounding it’s V-Go® Wearable Insulin Delivery device. Of course, the agreement means expanded sales will be expected, leading to excitement among investors who are sending the stock toward the top. Today, we’ll talk about:
- The distribution agreement;
- what we’re seeing from VLRX as a result;
- and what we’ll be watching for ahead.
VLRX Announces A New V-Go® Distribution Agreement
As mentioned above, Valeritas Holdings is having an incredibly strong day in the market after announcing a new distribution agreement surrounding V-Go®. In a press release issued early this morning, the company announced that it has entered into an agreement with AMSL Diabetes and NZMS Diabetes. The agreement surrounds the commercialization of the company’s V-Go® device in both Australia and New Zealand.
According to the terms of the agreement, AMSL Diabetes and NZMS Diabetes will have the right to promote, market, and sell the company’s wearable insulin delivery device to diabetes patients and clinics in Australia and New Zealand, greatly expanding the reach of this product. On the other hand, Valeritas will retain some responsibility, including product development, regulatory approval, quality management and manufacturing. In a statement, John Timberlake, CEO and President of VLRX, had the following to offer:
We are excited to offer the V-Go® Wearable Insulin Delivery device to patients with type 2 diabetes in Australia and New Zealand, and thrilled to be partnered with AMSL and NZMS Diabetes… Our decision to partner with AMSL and NZMS Diabetes was driven by our goal of choosing the best distributor in Australia and New Zealand.
The above statement was followed up by Richard Plowright, Managing Director at AMSL and NZMS. Here’s what he had to offer:
Adding V-Go® to our portfolio is a significant step towards addressing the needs of Australian and New Zealand patients with type 2 diabetes who want simple and effective insulin management that doesn’t interfere with their way of life… We’re delighted with our exclusive partnership with Valeritas, and we’re looking forward to seeing the benefits it will bring to patients across Australasia.
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 this particular case, the news proved to be overwhelmingly positive. With the distribution agreement in mind, the audience for the company’s product expands greatly. So, it’s no surprise to see that the stock is making a run for the top in the market today. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (12:04), VLRX is trading at $2.56 per share after a gain of $1.32 per share or 106.37% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VLRX. In particular, we’re interested in following the company’s continued work to bring V-Go® to patients in need around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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