SYNLAB distribution expansion into Brazil

Microba Testing Services Update New SYNLAB Agreement Signed with Brazil Microba and SYNLAB continue to expand distribution of Microba’s testing technology across Europe and Latin America Microba has now executed a distribution agreement with SYNLAB to expand access to Microba’s testing technology into Brazil. This new agreement opens up the largest country in South America to Microba. Microba Life Sciences Limited(ASX: MAP) (“Microba” or the “Company”), is pleased to announce that an agreement has been executed with SYNLAB International GmbH (“SYNLAB”) (ETR: SYAB) affiliate organisation Synlab Laboratorio do Brasil, to distribute Microba’s testing technology into Brazil. Microba’s Senior Vice President - Services, Mr Bernie Woodcroftsaid, “Adding Brazil opens up the largest country in South America to Microba, and represents another positive step forward in the global distribution expansion of Microba’s testing services. We continue to progress distribution expansion with SYNLAB, to drive our testing into the hands of clinicians and patients across Europe and Latin America.” In 2020, Microba entered into a master agreement with SYNLAB International GmbH and an agreement with SYNLAB Diagnosticos Globales to deliver Microba’s testing to Healthcare Providers in Spain, with an option to formalise distribution agreements across their affiliate organisations, which operate in 36 countries. With positive sales and customer feedback in Spain, in October 2022 SYNLAB further activated their rights through an amendment to the master agreement with Microba to pursue formal expansion into additional countries across Europe and Latin America. Aligned to this, over the last 6 months agreements have been signed with SYNLAB affiliate organisations across Italy, Portugal, Türkiye, Czech Republic, Poland, Croatia, Hungary and Romania. An agreement has now been signed with SYNLAB’s affiliate organization in Brazil, which provides them with non-exclusive distribution rights out to 31 December 2028. Brazil is the largest country in South America and the seventh most populous country in the world with approximately 215 million people. Expansion into Brazil represents another positive advancement in distribution with Europe’s largest medical diagnostics company. Further affiliate country agreements are anticipated to be completed in the near term to continue this expansion activity with SYNLAB.

Not ASX news worthy apparently.
A market of 215 million people,

At some stage these distribution agreements will kick in.
Dr Luke Reid initially stated (at IPO ) it takes about 6 months of set up before the first testing services revenue starts rolling in. I think that estimate is conservative. From other agreements already in place and from my discussions with the company its more like 9 to 12 months. There is considerable investment made by each distribution partner into the set up ( $1 to $2 mil ) so for e.g SYNLAB have spent million across Europe and South America. SYNLAB keeps expanding the Microbiome testing agreements into more countries which speaks to their confidence in the future of this service. Pay day is coming for Microba.