The stock of medical device company INVO Bioscience (OTCQB:INVO) has been in consolidation mode over the course of the past few months. It has traded within a narrow range. However, in light of recent events, it might be worthwhile to take a closer look at the company.
New Joint Venture
INVO, which is involved in producing medical solutions meant for the infertility industry, announced the formation of a key joint venture towards the end of last month.
On September 30, the company announced that it has created a joint venture with Dr. Ramiro Ramirez, owner of several businesses in Mexico, and Dr. Francisco Arredondo, a well regarded eproductive endocrinologist. The joint venture was formed through the company’s fully owned subsidiary INVO Centers LLC.
INVO Bioscience is the manufacturer of the only in vivo Intravaginal Culture System in the world named INVOcell. The joint venture in question is going to work on the development of a market for INVOcell in Mexico.
The venture, named Positib Fertility S.A. de C.V., is an entity that has been registered in Mexico and will work towards forming fertility treatment centers that offer INVOcell. The first center is going to be established in Monterrey, Mexico.
Terms of the Agreement
According to the provisions of the agreement signed with the two aforementioned doctors, INVO Centers will own 1/3 of the joint venture. Dr. Ramiro Ramirez and Dr. Francisco Arredondo are both going to own 1/3 each as well.
INVO Bioscience will be responsible for providing Positib Fertility with the devices. In addition to that, it will also provide tech support and training so that the centers could be run smoothly.
On the other hand, Positib will be fully responsible for the day to day running of the clinics. It is a significant development for INVO as it tries to open up its presence in a key market.
Earlier this year in July, INVO Bioscience had another major breakthrough after it managed to get the registration approval for INVOcell from the Turkish authorities.
It is a major breakthrough for the company since the registration approval is going to clear the way for INVO to start the process of commercialization of INVOcell in Turkey.
It was back in November last year that INVO entered into an agreement with Orcan Medical with regards to a commercial partnership for distributing the INVOcell device in Turkey. This is something that is likely going to be watched closely by investors and analysts.
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