Covalon Technologies Ltd. (TSXV: COV) share price received a boost after announcing a distribution agreement with Medline Industries Inc., the largest privately held medical distributor in the United States. Medline will be distributing Covalon-branded products lines into its extensive United States customer base. Shares of Covalon were up 37% reaching a day high of $1.49 on above average volume and finally closing at $1.42 at the end of the trading session.
Products distributed by Medline can be found in most hospitals, extended-care facilities, surgery centers, physician offices, home care dealers, home health agencies, and retail outlets in the United States. Medline leads the market in more than a dozen major medical product categories, including skin care, operating room kits, surgical trays, and advanced wound care. As a result, many of the departments within healthcare institutions already have purchasing relationships with Medline which allows for a seamless procurement process for purchasing Covalon’s products.
Covalon offers infection management and advanced wound management dressings for both acute and chronic wounds, and is the only provider of a dual antimicrobial silicone adhesive technology used in its IV Clear and SurgiClear brands. Both of these product lines offer superior efficacy in helping to prevent infections and medical adhesive skin injuries, while providing total insertion or incision site visibility to the healthcare provider.