New deal with GE sends Nanosonics surging

The biotech stock surged on news global giant GE had made an investment in the company's product.

Nanosonics (NAN) surged to a 27-month high today on news that GE has made a fresh investment to bolster the rollout of Nanosonics’ ultrasound probe disinfection device.

The global conglomerate will establish a dedicated North American sales team to push out the device to medical facilities in the US and Canada, and is an important sign that GE is committed to driving sales of Nanosonics’ flagship product.

GE signed a contract to be the exclusive US and Canadian distributor of this product in early 2011 and the latest news from GE is important for sentiment because small Australian companies that have struck similar agreements with global giants have sometimes found their products sidelined.

Flu treatment Biota had to take legal action against partner GlaxoSmithKline (GSK) and laboratory automation firm LBT Innovations (LBT) doesn’t seem to be getting much support from sole distributor bioMerieux.

But the new commitment from GE is not the only good news. Nanosonics reported a 21% jump in sales to $14.9 million although it posted a deeper loss of $5.8 million compared with last year’s loss of $4.7 million as the company ramps up investment in market development.

The stock recorded it best gain in nearly two years this afternoon of 11.7% to 86 cents.

Nanosonics is part of the Uncapped 100.