Halifax-based MedMira (TSX: V.MIR, Stock Forum), announced plans to move forward with an outsourced manufacturing strategy Wednesday morning.
The company, which develops and markets rapid diagnostic technology and solutions, will outsource manufacturing of basic components and product assembly of its rapid diagnostic kits to strategic partner Shenzhen Kang Sheng Bao Bio-Technology Co., Ltd, which specializes in manufacturing and distribution of in vitro diagnostic kits.
Medmira says that using an outsourced manufacturing model, it can “answer the demand and price complexities in high volume markets such as Africa, Asia, and Latin America and capitalize on new opportunities for OEM contracts.” It also notes that the rapid tests being manufactured through this partnership “will answer the demand for high quality, low cost rapid diagnostics for HIV, Hepatitis and other infectious and sexually transmitted diseases. “
"We have worked with KSB over the past several months, taking the necessary time to ensure a seamless transfer of the manufacturing knowledge base. This transition to an outsourced manufacturing model will provide clear benefits to MedMira and our customers across the globe. It allows us to focus on our core competency of developing innovative diagnostic solutions on the award-winning rapid flow-through technology platform," said Hermes Chan, president and CEO of MedMira.
Shares of the company surged 50% to 7.5 cents Wednesday.
On MedMira’s Bullboard Wednesday, several posters were weighing in with their thoughts on the company and the news, including saga1 who said:
to all long suffering mir shareholders
this is the big news that will solve all the rest of the issues !
1 = NOW THE INDIA ORDER CAN BE FILLED AND STILL MAKE A PROFIT ? we will have to see if the INDIA order can be saved, and follow up orders can be done ?
2 = EXPECT A PRESS RELEASE SOON THAT THE AHD ( INITIAL ONE MILLION UNIT ORDER ) has started to be shipped !
3 = ORDERS HAVE BEEN RECIEVED BY ASIA MEDITECH FOR THE CHINESE MARKET !
4 = MAYBE PRODUCTION CAN BE MADE IN CHINA FOR A LOWER PRICE, TO SUPPLY THE RUSSIAN MARKET ? [sic]
smts noted: “I think if they would have been acting on the new strategy they should have said so in the release, e.g. now we are in a position to fulfill our 1000000 unit Asia, India, etc. order. Manufacturing is confirmed to begin by end of month and 1st shipment targeted for XXX. All they've said with this is that they plan to move forward but they haven't said that they have moved forward. I don't like that. Perhaps, they are saving this for the AGM.... or next year. IMHO, a step in the right direction, but the same old fuzzy 'clarification'. ....geez. Sorry for the skeptism, but .... well, it does come from somewhere as you all know[sic].”
