JERUSALEM, Jan. 3, 2012 (GLOBE NEWSWIRE) -- Brainsway Ltd. (TASE:BRIN) is pleased to announce that, on January 1st, 2012, it entered into an exclusive agreement for the distribution of the Deep TMS devices with a Chilean company specially formed for the purpose and owned by a business group in the pharmaceutical industry.
Pursuant to the agreement, the distribution company has been granted exclusive rights to market and promote sales of the Deep TMS device in Chile for 10 years. The retention of these exclusive distribution rights for the duration of the contractual period (except during the first three years) is contingent upon the distribution company's renting out the contractually specified minimum number of Deep TMS devices each year.
The distribution company will promote, market and distribute the Deep TMS device in Chile for the treatment of major depression, schizophrenia, bipolar depression, Parkinson's disease, post-traumatic stress disorder, and any other indication approved by the Chilean authorities. Brainsway will provide the distribution company with the devices it orders, and the distribution company, in turn, will be responsible for renting out these devices and installing them at the clients' facilities (e.g. private practices, clinics and hospitals). Furthermore, the distribution company has undertaken to set up specialized Deep TMS treatment centers utilizing Brainsway's proprietary device. Clients will pay the distribution company a fixed fee for each device, or alternatively, a "pay-per-use" fee based on the number of treatments administered using each device. The cost to clients will be determined by the distribution company alone. At all times, the Deep TMS devices will remain the property of Brainsway.
The distribution company will pay Brainsway a fixed monthly fee for each Deep TMS device provided. Brainsway has reserved the right to switch to a "pay-per-use" charging mechanism, whereby it would be paid for each treatment administered using the Deep TMS devices (but in any event, no less than a minimum agreed-upon fee).
The distribution company has undertaken to obtain all the regulatory approvals necessary for the marketing of the Deep TMS device in Chile for its various indications no later than April 30, 2012. The distribution company has further undertaken to obtain commitments from major healthcare service providers and insurance companies in Chile to provide coverage for treatments using the Deep TMS device.
Uzi Sofer, Brainsway's CEO, stated, "Expanding the global distribution network for Deep TMS is a major growth driver for Brainsway. Accordingly, the signing of this agreement is a key milestone achievement for our Company."
About Brainsway Inc.
Brainsway Ltd. is dedicated to the development and marketing of Deep TMS (Transcranial Magnetic Stimulation) systems - novel, noninvasive medical devices for treatment of a wide range of neurological and psychopathological disorders. In principle, any brain-related disorder that is associated with pathological activity of specific brain sites may be treated by this method. Potential applications include addiction, schizophrenia, obesity, eating disorders, Parkinson's disease, Alzheimer's disease, autism and post-traumatic stress disorder.
Our initial focus is the treatment of major depression. The unique technology of Brainsway is based on patents filed by the U.S. National Institute of Health (NIH) and by the company. Brainsway has an exclusive license from the NIH for the patent and technology. Headquartered in Jerusalem, Israel, the company's ordinary shares and warrants trade on the Tel Aviv Stock Exchange under the symbol 'BRIN.'
Forward-Looking Statements
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements.