China JV Making Good Progress
EOFlow Co., the producer of EOPatch, a small and light wearable insulin pump, has exported an EOPatch production line to its joint venture in China, Sinoflow Co., the company announced on Oct. 17.
On Sept. 30, the company shipped equipment to set up an EOPatch production line in Sinoflow, along with materials and semi-assembled parts for trial production of the disposable insulin pump. It also dispatched a small team of manufacturing experts for equipment installation and line construction to China. According to the company’s latest announcement on DART, the production equipment and technical service export accounts for about 2.2 billion won.
An EOFlow official said, “Sinoflow and EOFlow made an equipment sales agreement last July to ship all equipment within six months, and all shipments were made on Sept. 30, well ahead of the target schedule. The revenue from the export will be recognized in the third quarter.”
The EOFlow manufacturing team will set up an EOPatch production line in Sinoflow’s manufacturing facility by the end of November. Sinoflow is currently working on initiating an EOPatch clinical trial in China. After that, registration process of EOPatch with the National Medical Products Administration will follow before selling in China.
Sinoflow was established last January with Changsha Sinocare Co., Ltd. (Sinocare) of China. It aims to provide EOFlow’s disposable wearable insulin pumps in the Greater China, where the largest diabetes population in the world lives but has no such solution available yet. Sinocare is well known as the first publicly listed blood glucose monitor manufacturer on the Shenzhen Stock Exchange in 2012.
EOFlow expects a solid revenue performance in the third quarter of this year. The company aims to continue its earnings growth with domestic and international EOPatch sales. Amid a strong U.S. dollar rally, EOFlow with a high proportion of its revenue coming from exports sees its upcoming financial report benefit from it as well.