[Source: Belluscura]
It is often said one of the best ways of gauging the calibre of a company's technology is by the quality of its customers.
Today best-of-breed, portable oxygen concentrator (POC) developer Belluscura announced that the US Department of Defence & associated veterans had began using its X-PLOR devices via the DLA procurement arm & distributor, Lovell Government Services.
In turn providing another major client endorsement & possibly very significant future sales channel too boot.
CEO Bob Rauker adding: “[This agreement] opens up a significant opportunity for X-PLOR - as it is now available [to US] military installations, military hospitals and other federal/state agencies.”
Better still, the news comes hot on the heels of recently signing a potentially transformational manufacturing deal with InnoMax Medical Technology to build POCs in China.
The idea being to more than double BELL's production capacity in 2023, & accelerate the firm’s international expansion into Asia.
Here according to the World Health Organization, >1bn people globally suffer from chronic respiratory issues.
With the worldwide oxygen therapy market expected to climb 10.1% CAGR between 2021-26, & be worth $18.5bn. Whilst, the POC segment is predicted to expand at an even faster 14% pa clip, & hit $2.7bn by 2026.
Plus this could prove to be conservative, since there are apparently almost 100m people in China alone suffering from chronic obstructive pulmonary disease (COPD) - alongside another 50m in India & 5m+ in Japan.
CEO Bob Rauker, commenting “This agreement will >2x our manufacturing capacity and provide access to the significantly larger Asian market. In China there are 5x the COPD cases than in the US."
Separately afterwards, house broker Dowgate Capital Limited encouragingly advised: “We will update our existing forecasts (see chart) at the next trading update, [where we plan to] materially increase our 2023-25 numbers”. May be too nudging up their 180p/share target price.