New distribution agreement in China for DMS Biotech
SIGNIFICANT NEWS
FACT

DMS announced it had signed an agreement in China for its lipofilling solution.


ANALYSIS

Through DMS Biotech, DMS has reached an agreement with HighFive Biotech Company Ltd (Taiwan) which specialises in Beauty products. The exclusive distribution agreement (covering Taiwan and China) should start in FY18 (in terms of registration) and generate, over the longer run, a turnover of at least €5.7m over five years. It is worth mentioning that China is the third market worldwide (after the US and Europe) while it also posts the highest growth rate (+10% in FY16 according to industry sources).


IMPACT

No impact short term on our numbers but the agreement confirms the potential for DMS Biotech, a new segment that so far has very limited sales (€0.3m in H1 17) and should be welcomed by the market.