Covalon Technology Limited (COV)

[zenvesting]

Covalon has a License and DISTRIBUTION agreement with Molnlycke, taken from Covalon's PR about the agreement: "The parties simultaneously signed a supply and distribution agreement under which Covalon will provide to Molnlycke its United States Food and Drug Administration (FDA) cleared products, SurgiClear™ and IV Clear™, for distribution under the Molnlycke brand."

http://www.covalon.com/press-release/59/covalon-announces-major-license-and-distribution-agreement-with-molnlycke-health-care

There is a royalty stream, but Covalon will still oversee the production of the product through their contract manufacturer, which should allow for greater profits overall.

I believe the greater issue last quarter was that Molnlycke hadn't even "debuted" the product to the market until the end of the quarter. Investors expecting an immediate boost to sales have unrealistic expectations IMO, sales growth for these products isn't going to be instantaneous; but hopefully slow and steady over the long term.

JMHO.