Valeritas’ (NASDAQ:VLRX) shares are skyrocketing over 120% today after an announcement of a major new distribution agreement with AMSL Diabetes and NZMS Diabetes for the commercialization of its V-Go® Wearable Insulin Delivery device in Australia and New Zealand. According to the announcement, AMSL Diabetes and NZMS Diabetes will have the rights to promote, market and sell the V-Go to diabetes clinics and patients in these countries.
“We are excited to offer the V-Go® Wearable Insulin Delivery device to patients with type 2 diabetes in Australia and New Zealand, and thrilled to be partnered with AMSL and NZMS Diabetes,” said John Timberlake, CEO and President of Valeritas. “Our decision to partner with AMSL and NZMS Diabetes was driven by our goal of choosing the best distributor in Australia and New Zealand.”
“Adding V-Go® to our portfolio is a significant step towards addressing the needs of Australian and New Zealand patients with type 2 diabetes who want simple and effective insulin management that doesn’t interfere with their way of life,” said Richard Plowright, Managing Director of AMSL and NZMS. “We’re delighted with our exclusive partnership with Valeritas, and we’re looking forward to seeing the benefits it will bring to patients across Australasia.”
Valeritas will retain responsibility for product development, regulatory approval, quality management, and manufacturing while AMSL Diabetes and NZMS Diabetes will be responsible for sales, marketing, customer support and distribution activities in Australia and New Zealand.
On the ratings front, Valeritas stock has been the subject of a number of recent research reports. In a report released on March 28, Cowen analyst Doug Schenkel downgraded the stock to a Hold rating on VLRX – what a bad timing.
Schenkel’s picks have a 9.1 percent one-year average return with a 65 percent success rate, according to analyst ranking service TipRanks, placing him in the top 15 percent of all Wall Street analysts covering any industry.