Infection prevention specialist Tristel (TSTL:AIM) has received approval from India’s Central Drugs Standard Control Organisation (CDSCO) for its Duo high-level disinfectants for the decontamination of semi-critical medical devices . The announcement pushed the shares up 2% to 485p.
Chief executive Paul Swinney said, ‘The three Duo products provide Indian hospitals with an affordable and easy-to-use high-level disinfection method for medical devices used in ultrasound, ophthalmology, and gynaecology.
‘Combining these latest approvals with those previously gained gives us a broad product offering for the Indian market’.
BUILDING MOMENTUM
This demonstrates continuing market penetration in the world’s second most populous country. In 2019 the company received approval for Stella, an instrument soaking system for instruments used in urinary diseases such as kidney stones, prostate problems and bladder control.
In addition the firm recieved the go-ahead for Rinse Assure, which is used with endoscope washer disinfectors. Endoscopy is a nonsurgical procedure used to examine a person's digestive tract, using a flexible tube with a camera attached.
Duo is a hand-held dispenser which applies a proprietary chlorine dioxide chemistry as foam to the surface of medical devices and is already used across Europe, Asia Pacific and the Middle East.
Meanwhile the company is seeking approval for Duo ULT from the US Federal Drug Administration (FDA). The product is intended for invasive ultrasound probes.
NET GAINS
Tristel shares were weak despite posting full-year results which beat expectations on 22 July due to concerns that non-essential hospital treatments were being postponed, impacting the use of its decontamination products on medical devices. In addition, travel restrictions to the US delayed the appraisal of a product for the North American market.
However at a shareholder open day the company revealed that the Covid-19 related reduction in revenues of £0.5 million was more than offset by an increase of £2 million in Cache Surface sales.
The Company has invested heavily over the past three years to create a product portfolio for hospital surface disinfection, called the Cache collection. The COVID-19 experience has validated the Cache proposition and accelerated the rate of customer acquisition beyond the Company's pre-pandemic business plan.
This demonstrates increasing product and geographic diversification, which provides more resilience to the business.
