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Why is Amedica (AMDA) Stock Soaring Today?

On Monday, shares of commercial biomaterial company Amedica Corp AMDA are soaring, up over 33% in mid-morning trading after they announced a distribution deal with Shandong Weigao Orthopedic Device Company Limited.

Under the agreement, Amedica’s silicon nitride spinal implants will be exclusively marketed and distributed in China where Weigao Orthopedic is based. The orthopedic company will make annual purchases of 20,000 units in the first year and expand to 50,000 units by the sixth year, following regulatory approval by the China Food and Drug Administration (CFDA).

“With more than 50,000 minimum unit sales to occur within the first two years following CFDA clearance, this agreement far surpasses total silicon nitride unit sales to-date, and marks a momentous time for Amedica,” said Dr. Sonny Bal, Chairman and Chief Executive Officer. “This partnership with Weigao Orthopedic allows us to significantly increase our global sales footprint with a large-scale distribution partner who is familiar with the Chinese regulatory landscape.”

“We are very pleased with this exclusive distributor partnership as we plan to leverage the Amedica brand to offer a truly differentiated product to our broad network of hospitals and medical units in China,” stated Mr. Gong Jianbo, Chief Executive Officer and Executive Director of Weigao Orthopedic. “We expect the combination of this technically advanced biomaterial with our well-established network to quickly gain significant market share.

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