VivoPower secures Mpox diagnostic tests distribution heads of agreement for Singapore, Hong Kong and Australia with Sansure Biotech Inc

Rhea-AI Summary

VivoPower International PLC (NASDAQ: VVPR) has announced a non-binding distribution heads of agreement with Sansure Biotech Inc for Mpox diagnostic tests and detection kits in Singapore, Hong Kong, and Australia. This initiative is part of VivoPower's business continuity planning protocols to safeguard employees and supply partners and customers. As a certified B , VivoPower is committed to the triple bottom line of People, Planet, and Profit. Selected VivoPower management will fund pro bono distribution to disadvantaged communities. The company intends to reinvest any surplus profits from Mpox distribution agreements into its core sustainable energy solutions business.

The World Health Organization declared the Mpox outbreak a public health emergency of international concern on August 14, 2024. As of June 2024, there have been 99,176 confirmed cases and 208 deaths reported across 116 countries, with Africa experiencing the highest transmission rates.

Positive

• Non-binding distribution agreement for Mpox diagnostic tests in Singapore, Hong Kong, and Australia
• Potential for expansion into other markets under consideration
• Initiative aligns with business continuity planning protocols
• Management to fund pro bono distribution to disadvantaged communities
• Plans to reinvest surplus profits into core sustainable energy solutions business

Negative

• Agreement is non-binding, subject to finalizing definitive documents
• Potential distraction from core sustainable energy solutions business
• Uncertain profit margins and market demand for Mpox diagnostic tests

Medical Research Analyst

The distribution agreement for Mpox diagnostic tests is a strategically sound move for VivoPower, albeit with direct financial impact. While the Mpox outbreak has been declared a public health emergency, its scale remains relatively small compared to other global health crises. The $1.4 billion market cap of Sansure Biotech suggests a reputable partner, but the non-binding nature of the agreement introduces uncertainty. VivoPower's commitment to reinvest profits into its core business indicates this is more of a corporate social responsibility initiative than a significant revenue stream. The pro bono distribution to disadvantaged communities aligns with their B status but may limit profitability. Overall, this move enhances VivoPower's risk management and public image without substantially altering its financial outlook.

Market Research Analyst

This agreement represents a strategic diversification for VivoPower, leveraging its existing geographical presence in key markets. The overlap between Mpox-affected regions and VivoPower's operations creates a synergistic opportunity. However, the impact on stock value may be due to several factors:

• Non-binding nature of the agreement
• Intention to reinvest profits into core business
• Pro bono distribution limiting potential returns

The move does demonstrate VivoPower's agility in responding to market needs and reinforces its commitment to social responsibility. Investors should view this as a positive but minor development, potentially enhancing brand value and stakeholder relationships rather than significantly boosting near-term financials.

Financial Analyst

From a financial perspective, this agreement presents a low-risk, low-reward scenario for VivoPower. The non-binding nature of the deal and the company's stated intention to reinvest profits into its core business suggest minimal direct financial impact. However, there are potential indirect benefits:

• Enhanced business continuity and risk management
• Strengthened relationships in key markets
• Improved corporate image as a socially responsible entity

These factors could contribute to long-term value creation. The pro bono distribution, while admirable, may limit profitability. Investors should view this as a strategic move to bolster VivoPower's resilience and reputation rather than a significant revenue driver. The stock's reaction is likely to be neutral to mildly positive, reflecting the balanced nature of this development.

Sansure Biotech Inc (“Sansure”) is a US$1.4bn market capitalisation in vitro diagnostic solutions company listed on Shanghai Stock Exchange

Mpox virus footprint has significant overlap with key markets where VivoPower operates, including the Asia Pacific region, Australasia, Africa and the Middle East

The Singapore government has already introduced quarantine measures to contain the spread of the Mpox virus, with risk of other countries following suit

Distribution agreement is part of VivoPower’s business continuity planning protocols aimed at safeguarding employees, as well as facilitating distribution and supply to valued partners and customers

As a certified B Corporation, VivoPower is committed to the triple bottom line of People, Planet, and Profit; selected VivoPower management to fund pro bono distribution to disadvantaged communities

VivoPower intends to reinvest any surplus profits and cash generated from Mpox distribution agreements into its core sustainable energy solutions business

LONDON, Sept. 16, 2024 (GLOBE NEWSWIRE) -- VivoPower International PLC (NASDAQ: “VVPR”) has announced a distribution heads of agreement with Sansure Biotech Inc (“Sansure”) for the distribution and supply of Mpox diagnostic tests and detection kits to cover Singapore, Hong Kong and Australia, with other markets under consideration.

This proactive initiative is part of VivoPower’s business continuity planning (“BCP”) protocols to provide preventative measures for its own team and to supply valued partners and customers in the aforementioned markets. The heads of agreement is non binding, but both parties will work towards finalising definitive documents.

As a certified B Corporation, VivoPower is committed to the triple bottom line of People, Planet, and Profit. In this regard, VivoPower has consistently prioritised not just the professional growth of its teams, but also their safety and health.

In addition, VivoPower’s chairman and chief executive officer, as well as certain other executive leadership team members, will contribute their own funds to enable pro bono distribution of Mpox diagnostic and detection testing solutions to charitable organisations in selected markets that in turn provide support to impoverished and underserved communities.

The World Health Organization declared the Mpox outbreak a public health emergency of international concern on 14 August 2024, the highest alert under international health law.

As of June 2024, according to the United Nations, there have been 99,176 confirmed cases and 208 deaths reported across 116 countries including several of VivoPower’s markets, with Africa experiencing the highest transmission rates.

About VivoPower

Established in 2014 and listed on NASDAQ since 2016, VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions.

VivoPower’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.

About Sansure Biotech 

Established in 2008, Sansure Biotech Inc is a public company listed on the Shanghai Stock Exchange with over 2,000 employees and a market capitalisation in excess of US$1bn. It is an in vitro diagnostic solution provider integrating diagnostic reagents, instruments and independent clinic laboratory services with its own innovative gene technology as its core.

Forward-Looking Statements

This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.

Contact
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shareholders@vivopower.com

FAQ

What markets are covered in VivoPower's Mpox diagnostic tests distribution agreement?

VivoPower's distribution heads of agreement with Sansure Biotech Inc covers Singapore, Hong Kong, and Australia for Mpox diagnostic tests and detection kits, with other markets under consideration.

How many confirmed Mpox cases were reported as of June 2024?

As of June 2024, according to the United Nations, there have been 99,176 confirmed Mpox cases and 208 deaths reported across 116 countries.

What is VivoPower's plan for profits generated from Mpox test distribution?

VivoPower (NASDAQ: VVPR) intends to reinvest any surplus profits and cash generated from Mpox distribution agreements into its core sustainable energy solutions business.

When did the WHO declare Mpox a public health emergency of international concern?

The World Health Organization declared the Mpox outbreak a public health emergency of international concern on August 14, 2024.