aap Implantate AG (XETRA: AAQ.DE) has reached a further, decisive milestone in developing the strategically important US market. The company has signed the first eight contracts for the distribution of its LOQTEQ® products with non-stocking distributors. On the basis of these agreements these distributors will cover different regions in the federal states California, Texas, Ohio, Tennessee, Oklahoma and Utah. The company anticipates initial sales in the US market in the third quarter of the current financial year.
aap Implantate AG is banking in the United States on a hybrid distribution model. The company plans to sell its LOQTEQ® products locally via both stocking (distributor buys the products) and non-stocking distributors (distributor is supplied with the products and pays after usage). Here, it should be noted that most of the sales in the USA are handled via non-stocking distributors.
In recent months the company has successfully built up the necessary infrastructure for the distribution of its LOQTEQ® products in the United States. The first move was to set up a US distribution company, aap Implants Inc., and all distribution activities are managed by a new experienced Sales Director. In addition, an agreement was signed with a logistics service provider who will be responsible for the logistics of products to distributors and hospitals.
With the contracts signed, sales of LOQTEQ® products in the US now get kicked off. The next steps include the provision of necessary inventories and the execution of various product training courses and sessions for the distributors’ sales employees. Furthermore, aap Implantate AG will be stepping up significantly its presence at the leading relevant trade shows and events in the United States.
In order to reach an optimal geographic coverage as well as to extend the presence in this strategically important market, aap Implantate AG will further push the acquisition of distributors in the coming months and intensify distribution activities.