OMER, Israel, Jan. 15, 2015 (GLOBE NEWSWIRE) -- Medigus Ltd. (TASE: MDGS), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, announced an extension of its 2013 agreement with Sinopharm (China National Pharmaceutical Group Corporation) which granted the Chinese pharmaceutical company exclusive rights to distribute the MUSE(TM) system in China. Sinopharm has been granted up to two years from the date of the extension of the agreement to gain all necessary regulatory approvals from the China Food and Drug Administration (CFDA). The agreement extends Sinopharm's exclusivity to distribute the MUSE system from two to four years following receipt of such regulatory approvals, and Sinopharm has also committed to purchasing a minimum of $17.6 million worth of MUSE and related products over the course of four years, from the date of CFDA approval.
Medigus will receive an upfront deposit of $350,000 towards initial purchase of MUSE systems, which will be returned by Medigus (less any amounts for products ordered) if the regulatory approval is not achieved during the timeframe specified in the agreement. The agreement also provides Sinopharm with the discretionary right to appoint Golden Grand Medical (Shanghai Golden Grand-Medical Instruments Ltd.), a Chinese company specializing in the distribution of medical devices, as its exclusive sub-distributor in China. Under the agreement, Golden will manage sales and customer service, marketing and training, and recording of clinical trials, following submittal of non-compete clauses and intellectual property protection, and other, similar restrictions, while Sinopharm remains solely responsible towards Medigus under the agreement.
"Effective, minimally invasive treatments that can positively improve the quality of life of GERD patients while also delivering cost savings to the health system is a growing need in this underserved market. This amended agreement reflects Sinopharm's belief in the commercial potential of the MUSE system and its ability to meet this need, as well as of its commitment to Medigus by quadrupling the value of the original contract and potentially the quantity of units ordered", said Chris Rowland, CEO of Medigus. "The selection of Golden, one of China's leading companies in compliance, marketing and commercialization of advanced medical devices, further strengthens that commitment. We are proud of this partnership, and look forward to further developing our presence in key markets like China, the U.S and Europe", he added.
About Sinopharm
China National Pharmaceutical Group Corporation, SINOPHARM, is the largest pharmaceutical and healthcare group under State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) in China. The group has 22 wholly-owned subsidiaries and holding companies, one H-share listed company, Sinopharm Group Co., Ltd., and three A-share listed companies, Beijing Tiantan Biological Products Corporation Limited (BTBP), China National Medicines Co., Ltd. (CNCM) and Shenzhen Accord Pharmaceutical Co., Ltd.. In 2009, the group's sale revenue had reached 65 billion Yuan. Among the 129 enterprises under SASAC, SINOPHARM is ranked 50th and 38th in terms of sales revenue and total profit respectively.
About Medigus
Medigus is a medical device company specializing in developing minimally invasive endosurgical tools and highly innovative imaging solutions. Medigus is a pioneer developer of a unique proprietary endoscopic device, the MUSE(TM) system, to treat gastroesophageal reflux disease (GERD), one of the most common chronic diseases in the western world. As an expert in micro-endoscopic devices, Medigus has developed a range of micro CMOS (complementary metal-oxide semiconductor) and CCD (charge-coupled device) video cameras, including micro ScoutCam(TM) 1.2, which to the best of the company's knowledge, is the smallest in the world. These innovative cameras are suitable for both medical and industrial applications. The MUSE system incorporates Medigus' revolutionary micro ScoutCam technology. Based on its proprietary technologies, Medigus designs and manufactures endoscopy and micro camera systems for partner companies, including major players in the medical and industrial fields. The company is committed to providing integrated solutions to meet all of its customer's imaging needs. Medigus is traded on the TASE (Tel-Aviv Stock Exchange). To learn more about the company's advanced technology, please visit www.medigus.com or www.microscoutcam.com.
About MUSE
The MUSE system is a leading technology in Natural Orifice Endoscopic Surgery procedures. The single operator system performs anterior partial fundoplication with standard surgical staples in a less invasive way, compared to other surgical procedures. Its intuitive endosurgical platform consists of a single use flexible surgical endostapler, equipped with a proprietary miniature camera, an ultrasonic sight and a range finder. The endostapler, which resembles an endoscope, is designed to be operated by a single user, includes a handle with controls, an 80cm flexible shaft, a 5cm rigid section holding a cartridge with 5 standard 4.8mm titanium surgical staples, a ratchet controlled one-way articulating section, and a distal tip. The MUSE system is FDA cleared and CE marked.
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MEDIA CONTACT:
Chantal Beaudry/ Carrie Yamond
Lazar Partners Ltd.
212-867-1762
cbeaudry@lazarpartners.com
cyamond@lazarpartners.com
INVESTOR RELATIONS:
Miri Segal-Scharia
Hayden/ MS-IR LLC
917-607-8654
msegal@ms-ir.com
HUG#1887229