CurveBeam AI has inked a decade-long exclusive partnership with a major Chinese medical device joint venture, unlocking rapid market entry and a $10 million capital boost to expand its weight bearing CT and AI solutions across Greater China.
- 10-year exclusive licensing and distribution agreement in China, Hong Kong, Macau, and Taiwan
- Up to A$10 million equity investment from Chinese partner tied to milestones
- Local manufacturing rights granted to reduce costs and mitigate tariffs
- Long-term royalty stream and strengthened supply chain for CurveBeam AI
- Partnership with Shandong WeiYing, backed by leading orthopaedic device group WEGO
Strategic Expansion into Greater China
CurveBeam AI Limited (ASX, CVB), a specialist in weight bearing CT (WBCT) scanners and AI-driven clinical assessment tools, has formalised a significant step in its global growth strategy by signing binding agreements with Shandong WeiYing Intelligent Medical Technology Co., Ltd. This joint venture, anchored by Shandong Weigao Haixing Medical Device Co., Ltd, a dominant player in China’s orthopaedic implant market, will spearhead the commercialisation of CurveBeam’s technology across China, Hong Kong, Macau, and Taiwan.
The 10-year agreements grant exclusive rights for sales, marketing, distribution, manufacturing, regulatory approvals, and intellectual property use within these territories. This comprehensive collaboration is designed to accelerate adoption of CurveBeam’s WBCT devices and proprietary AI solutions in one of the world’s largest and fastest-growing medical device markets.
Capital Injection and Operational Benefits
As part of the partnership, the Chinese joint venture will invest up to A$10 million in CurveBeam AI through a structured equity subscription. An initial A$4 million payment is expected within 30 to 60 days, with the remaining A$6 million contingent on achieving commercial and regulatory milestones. Shares will be issued at $0.405 each, representing up to approximately 5% of CurveBeam’s current issued capital if all milestones are met.
This capital injection provides CurveBeam with vital growth funding while limiting shareholder dilution. Moreover, local manufacturing rights granted to the partner will enable CurveBeam to optimise costs and mitigate tariff risks by producing devices within the region, addressing the high import costs that have previously challenged gross margins.
Strengthening Market Position and Innovation
The collaboration also establishes a joint steering committee to oversee the partnership, ensuring aligned strategic direction and operational execution. CurveBeam retains responsibility for regulatory approvals of US-manufactured products, while the partner manages approvals for locally manufactured devices.
Beyond immediate commercial benefits, this alliance validates CurveBeam’s technology leadership in WBCT and AI imaging within a critical market of approximately 38,000 hospital sites. The partnership is expected to generate a long-term royalty revenue stream from Chinese-produced devices, supporting sustained market penetration and compliance with China’s evolving procurement policies.
CurveBeam’s CEO Greg Brown highlighted the transformative nature of the deal, emphasizing the alignment through equity participation, local manufacturing, and milestone-based performance incentives. He expressed optimism about accelerated adoption, improved margins, and faster innovation cycles resulting from the partnership.
Looking Ahead
With this strategic foothold, CurveBeam AI is poised to expand its global footprint and enhance its supply chain resilience. The partnership with a well-established Chinese medical device conglomerate not only opens doors to a vast market but also positions CurveBeam to innovate more cost-effectively and respond swiftly to evolving clinical needs worldwide.
Bottom Line?
CurveBeam AI’s China joint venture marks a pivotal growth chapter, but milestone execution and regulatory hurdles will be key to watch.
Questions in the middle?
- How quickly will CurveBeam’s WBCT devices gain regulatory approvals across the new territories?
- What are the specific sales targets and timelines tied to the milestone payments?
- How will local manufacturing impact CurveBeam’s global supply chain and cost structure?