NEW YORK (TheStreet) — Capnia (CAPN) stock is up 14.07% to $1.54 on heavy trading volume on Wednesday after the company announced a five-year distribution agreement for one of its products in China.
The deal with Shanghai CiiC Science and Technology Development Co. will allow the company to sell Capnia’s “CoSense” products in China. The terms of the deal were not disclosed.
Sales of CoSense, which measures carbon monoxide in people’s breath, will begin by the end of 2016, Capnia said in a statement.
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“This agreement with Shanghai CiiC allows us to pursue a rapid path to the China market, potentially one of the largest opportunities in the world for CoSense with 16 million births every year,” Capnia CEO Anish Bhatnagar said in a statement. “This long-term partnership will provide synergies with respect to marketing authorization, sales, marketing and distribution, which will add significant value for CoSense.”
Based in Redwood City, CA, Capnia develops medical diagnostics and therapeutics.
So far today, 1.34 million shares of Capnia have traded, versus the company’s 30-day average of about 41,000 shares.
Source: The street