WORK Medical Technology Group (WOK) shares climbed Monday after the medical devices company cleared a significant regulatory hurdle for one of its artificial intelligence products.

The Hunan Provincial Medical Products Administration gave WORK Medical the green light to manufacture its Class II medical device, an AI-powered automated human blood cell morphology analyzer. This isn't just some incremental upgrade to existing lab equipment. The analyzer is designed to boost efficiency, consistency and accuracy in microscopic examinations by performing white blood cell differential counts on human blood smears and quantifying morphological parameters of red blood cells and platelets.

Manufacturing is set to kick off in the first half of 2026, but the company isn't waiting around to line up customers. WORK Medical has already inked a one-year exclusive distribution agreement with Shanghai Benke Medical Technology Co. to promote and distribute the analyzer throughout East China during 2026. The deal includes a minimum annual sales target of approximately $1.4 million, and Shanghai Benke has already put some skin in the game with a $142,300 prepaid performance bond. That bond gets deducted from the final payment or refunded without interest once the sales target is hit.

The device is aimed at supporting clinicians in cell morphology screening, which matters for catching blood disorders early and improving quality control in lab settings.

"With continuous AI-algorithm iteration and pipeline integration, it is expected to become standard equipment in hematology and oncology departments at tertiary hospitals and primary-care laboratories, and is aimed to provide support for early screening of blood disorders, quality-control enhancement, and labor-cost optimization," said WORK Medical CEO Shuang Wu.

Price Movement: WORK Medical shares were up 9.09%, trading at approximately $3.00 at the time of publication.