Zentek Announces U.S. Distribution Agreement for ZenGUARDTM-Enhanced Surgical Masks with Medwell Solutions
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The distribution agreement between Zentek and Medwell Solutions marks a strategic move to penetrate the U.S. healthcare market, particularly the surgical mask segment. Given the size of the U.S. healthcare industry, this partnership could significantly enhance Zentek's market presence. The demand for surgical masks has been on an upward trend, not only due to the pandemic but also because of increased health and safety standards. Medwell's established network and certifications position it as an ideal conduit to reach diverse healthcare facilities, potentially increasing Zentek's sales volume.
However, the success hinges on FDA approval, a critical regulatory milestone. It's important to note that the healthcare product market is highly competitive and the actual impact on Zentek's revenue will depend on the market's reception of ZenGUARDTM Enhanced Surgical Masks. The product's unique value proposition, centered on nanotechnology, must be clearly communicated and validated to gain a competitive edge.
Zentek's entry into the U.S. market with ZenGUARDTM Enhanced Surgical Masks could be timely, considering the ongoing concerns about healthcare-associated infections (HAIs). The advanced features of ZenGUARDTM, presumably leveraging nanotechnology, could offer superior protection compared to standard masks, addressing a critical need in healthcare settings. Medwell's experience and recognition in supplying high-quality products provide Zentek with a credible platform to launch its product.
Long-term, if ZenGUARDTM Enhanced Surgical Masks deliver on their promises, they could set a new standard in surgical masks, influencing procurement policies and healthcare guidelines. However, the product's adoption will depend on its cost-effectiveness and the ability to demonstrate tangible benefits over existing solutions. Zentek's stock could see positive movement upon successful market entry and adoption, but investors will be watching closely for FDA approval and initial sales figures.
From a financial perspective, the distribution agreement with Medwell Solutions is a forward-looking indicator for Zentek's growth trajectory. The initial two-year term offers a window into the company's revenue potential in the near term. The agreement's reliance on FDA approval is a common gating factor that introduces a level of uncertainty into the timeline for revenue recognition. Investors should monitor Zentek's progress through the FDA process as a key risk factor.
The partnership's impact on the stock market will likely be gradual, as tangible sales data will be the true test of market acceptance. Given Medwell's track record with government agencies and diverse certifications, the potential for large volume orders exists, but it's contingent on the product's market performance post-clearance. Zentek's financials will need to be evaluated post-launch to assess the actual business impact of this agreement.
GUELPH, ON / ACCESSWIRE / April 3, 2024 / Zentek Ltd. ("Zentek" or the "Company") (Nasdaq:ZTEK)(TSX-V:ZEN), an intellectual property development and commercialization company, is pleased to announce that it has entered into a definitive distribution agreement with Dallas, Texas-based Medwell Solutions LLC. ("MedWell") for its ZenGUARDTM Enhanced Surgical Masks in the U.S. The agreement was signed on March 18th 2024 and is for a period of two years from the date of facility establishment registration and issuance of market clearance from the U.S. Food and Drug Administration ("FDA"), at which point sales of ZenGUARDTM-Enhanced Surgical Masks can commence.
Medwell is a contract manufacturer and authorized distributor for commodity and specialized healthcare products and supplies. Their comprehensive portfolio includes devices for treating complex surgical procedures, kits for starting I.V.s, and even patient belonging bags. Medwell has been vetted by government agencies and is recognized for offering high-quality products, the ability to fulfill orders nationwide and successfully meeting pricing benchmarks.
The leadership for Medwell is comprised of over 20 years of hands-on surgical experience as a surgical technologist in the Air Force, guiding orthopedic and neurosurgeons for Johnson & Johnson technical devices as a product expert and consultant, and providing business development strategies as a specialist for various manufactured products and managing the hospital supply chain processes.
From a sales channel eligibility standpoint, Medwell has the following certifications:
- United States General Services Administration supplier
- Veteran Affairs certified as a Service-Disabled Veteran Owned Small Business
- Member of the National Minority Supplier Development Council
- Historically Underutilized Business-certified in the State of Texas
Medwell's commitment to growth and leadership has been recognized by several organizations focused on healthcare innovation, supplier diversity, community impact initiatives and small business development, including the Goldman Sachs 10,000 Small Business program.
Greg Fenton, CEO of Zentek commented: "As we navigate the FDA approval process, we continue to diligently identify and secure partners in the healthcare space where we anticipate stable and growing demand for surgical masks. The United States is the world's largest market from a healthcare spending perspective - and with Medwell's well-established sales channels and eligibility for significant and growing supplier diversity opportunities - our ZenGUARDTM Enhanced Surgical Masks are well positioned to bring an added level of protection and unique value proposition to Medwell's customers and the U.S. healthcare system."
Keith J. Palmer, CEO of Medwell commented: "The consideration and opportunity to represent Zentek's ZenGUARDTM Enhanced Surgical Masks allows Medwell to fulfill its purpose: to bring innovative products to healthcare organizations and professionals, while also embracing supplier diversity. ZenGUARDTM Enhanced Surgical Masks are a premier solution backed by science, research, and data aimed at improving the overall health of clinicians and the community. Medwell looks forward to the collaboration with Zentek and their vision of a healthier and safer world through nanotechnology."
About Medwell Solutions LLC
Headquartered in the Dallas-Fort Worth area, Medwell supplies hospitals and clinicians with common, everyday healthcare products. Medwell Solutions is VA certified as a Service-Disabled Veteran Owned Small Business and nationally certified as a Minority Business Enterprise. Medwell offers two distinct services for stakeholders by pioneering value in the underrepresented category of healthcare supplies and MedTech.
About Zentek Ltd.
Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the Company's commercial partners a competitive advantage by making their products better, safer, and greener.
Zentek's patented technology platform ZenGUARDTM, is shown to significantly increase the viral filtration efficiency of both surgical masks and HVAC (heating, ventilation, and air conditioning) systems. Zentek's ZenGUARDTM production facility is located in Guelph, Ontario.
For further information:
Keith J. Palmer
CEO
Medwell Solutions
Email: info@medwellsolutions.com
www.medwellsolutions.com
Ryan Shacklock
Senior VP, Strategy & Business Development
Zentek Ltd.
Email: rshacklock@zentek.com
To find out more about Zentek Ltd., please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on ZEN's SEDAR+ profile at http://www.sedarplus.ca/.
Forward-Looking Statements
This news release contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Zentek Ltd.
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