Inspiration Healthcare Group (LSE:IHC) has agreed a framework with Micrel Medical Devices to transfer the UK distribution of Micrel's ambulatory infusion pumps and related consumables to a Micrel-controlled entity, with the existing exclusive arrangement ending and full control passing to Micrel on 31 January 2027, and the products having generated £9.7m of revenue at an approximate 25% contribution margin in the year ended 31 January.
Under the terms, Inspiration will continue to manage and sell the products during a transition period to 31 January 2027, the employees responsible for the infusion line will transfer to Micrel under TUPE from 1 July, Micrel will buy back unsold inventory on the final transfer date and will make a compensation payment to Inspiration for the orderly handover.
There will be no impact on the Group's revenue and gross profit estimates for the current financial year because the business will be managed through the transition.
The board expects the operating-cost savings from the 1 July employee transfers, together with the compensation payment to help reduce net debt by approximately 20% during FY27, with net debt (excluding IFRS16 lease liabilities) at £5.1m as at 31 January.
"This separation of the infusion products allows the Group to focus on its core business of neonatology and neonatal ventilation in particular," said Raffi Stepanian, Chief Executive Officer.
