Consort Medical plc (LSE: CSRT), today announces that its Bespak Division has been awarded a major new contract. Bespak has signed a multi-year exclusive contract with Nicoventures Ltd (“Nicoventures”), a stand-alone company within the British American Tobacco Group focusing on the development and commercialisation of licensed nicotine products. The contract is for the supply of an innovative nicotine inhalation product for use as a safer alternative to smoking.
The supply of the product by Bespak would commence following regulatory approval. Revenues from the contract will be dependent on product sales following consumer launch. The capital expenditure required will be funded from current lending facilities over a three year period. As previously announced, Bespak was awarded the manufacturing development contract for the device in November 2011.
Bespak will manufacture the inhalation system and have responsibility for the final assembly of the product, including a canister containing the active pharmaceutical ingredient. The complete and final assembly will be housed in a dedicated facility. The product will also incorporate Bespak’s proprietary valve. This continues Bespak’s strategic development in broadening its product and service offering.
Jon Glenn, Chief Executive Officer of Consort Medical, commented:
“This is an exciting contract award for Consort Medical, which further demonstrates the full spectrum of the Group’s competencies, from product development, through to drug handling and full device assembly.
The full extent of the revenue opportunity will only become evident following regulatory approval and the product launch. Whilst we do not expect any near term revenue impact, we are optimistic about the prospects for the product in this very promising market.”
Adrian Marshall, Nicoventures’ Managing Director, commented:
“We are delighted to have agreed the contract with. This takes us closer to our ambition of introducing an innovative, licensed nicotine product as a safer alternative to smoking.”
Consort Medical is currently in a close period, and will publish its Interim results on 5 December 2012.