Creo Medical targets Southern African market with new distribution deal

Surgical endoscopy device company Creo Medical on Monday entered into a framework distribution agreement with First Medical Company.

Under the terms of the agreement, both First Medical and AIM-traded Creo will will seed the South Africa, Botswana, Namibia and Mozambique markets with Creo's Croma platform and Speedboat products over an 18-month period.

With more than 300 clients, including private and government hospitals, First Medical will purchase a minimum amount of the products from Creo and assist with the roll-out of a clinical education program designed to ensure quality control and best patient outcomes through the education of key clinicians.

The current agreement is expected to act as a precursor to First Medical becoming the exclusive distributor of Croma and Creo's suite of gastrointestinal devices in the African countries.

Creo's Speedboat range intended to reduce the length of hospital stays, cost of treatment and transferring therapy from the operating theatre to the endoscopy room, while the Croma platform combines radiofrequency for precise localised cutting and microwave energy for controlled coagulation.

Craig Gulliford, chief executive of Creo, said: "With a rapidly growing distribution network, Creo is well placed to advance the emerging field of surgical endoscopy through our advanced energy platform, paving the way for our suite of minimally invasive GI devices under development. First Medical's expertise and knowledge of the Southern African markets will prove invaluable to Creo as we continue to build our reputation worldwide."

"This third agreement, alongside Hoya Group, Pentax Medical and Diagmed Healthcare, demonstrates the growing momentum in the commercialisation of our lead product, Speedboat RS2," said Gulliford.

As of 0830 BST, Creo Medical Group’s shares were up 1.53% at 133.00p.