Vasomedical, Inc announced on April 16th that it has formally entered into a joint venture with PSK-Health for a worldwide agreement to sell respectively products in various market segments. The joint venture allows Vasomedical and PSK to market their products worldwide with the excpetion of the USA and China. Under their agreement, PSK is the exclusive distributor of Vasomedical’s EECP therapy products in China Vasomedical exclusive of PSK’s ECP systems in the U.S.
This news comes as ‘no surprise’ to those in the industry as many know the CEO of Vasomedical and the CEO of PSK are relatives from China. Further, Vasomedical is long ‘overdue’ for a lower cost ECP solution for the U.S market. Vasomedical has lost substantial market share in the U.S market due to lower cost, more competitive companies. Reductions in medical reimbursements has forced many U.S providers to look for lower cost solutions to provide effective ECP Therapy while remaining profitable. This venture with PSK may be a viable method to regain a competitive stance in the U.S market to compete with other U.S companies offering products at a fraction of the cost.
PSK has been effective in gaining worldwide market share (outside the US) for being a low cost ECP device. This marriage appears to be a good fit as PSK can assist Vasomedical in the expansion of further global markets and PSK can offer an economic component to the U.S market.