Belluscura confident in outlook after getting China approval

Belluscura has gained approval to distribute its X-PLOR portable oxygen concentrator (POC) in China, it announced on Wednesday, under a licensing agreement with InnoMax Medical Device Technologies.

The AIM-traded firm said discussions with Chinese distributors were underway, adding that the Asian POC market was expected to reach nearly $1bn in six years.

Looking at its current trading, Belluscura said that while 2023 results were slightly below expectations at the EBITDA level, prospects for 2024 remained unchanged.

Belluscura raised funds in October and anticipated additional resources from TMT Acquisition.

The company shifted its focus to the direct-to-consumer business in the second half of 2023, yielding higher-margin sales.

It said DISCOV-R was still garnering interest, with deposits received at a $3,000 list price.

The product was set for launch in early February, with total production in China expected by the third quarter of the year.

Belluscura said it expected a 50% increase in gross margin with a new aluminium sieve design, while CE and UKCA markings for X-PLOR were anticipated in the second quarter of 2024.

“We are delighted to have received approval in China which has taken over approximately 10 months,” said chief executive officer Bob Rauker.

“This enables us to launch sales into China with immediate effect.

“With our arrangement with InnoMax in place, we are confident that we can now deliver on the significant potential for our products in this large and growing market.”

Rauker said the approvals in China, Singapore, and Hong Kong were the first steps in leveraging the InnoMax agreement to expand in the ASEAN region and distribute portable oxygen concentrators in new markets.

“Building any start-up business is never easy, particularly within the MedTech world and the current economic environment.

“After two years of testing, developing and refining our products, the board is very confident that Belluscura is now well placed to take advantage of the significant opportunities it has in 2024 and beyond.”

At 1338 GMT, shares in Belluscura were up 2.32% at 22p.

Reporting by Josh White for Sharecast.com.