Medigus Signed a Distribution Agreement in China Sinopharm to Purchase SRS™ II Systems for a Minimum of $3.85 Million in the in the First Two Years of the Agreement
OMER, Israel, March 18, 2013 /PRNewswire/ --
Medigus Ltd. (TASE:MDGS), a leading medical device company dedicated to the development of innovative endoscopic procedures and technologies, announced today that it has signed a distribution agreement for SRS™II Systems in China with China National Pharmaceutical Group Corporation (Sinopharm).
Sinopharm, a cooperation managed by the Chinese government, is the largest healthcare, medical device and medication cooperation, with more than $25 billion in revenues in 2012.
According to the agreement, Sinopharm will be the exclusive distributor of the SRS™II Systems in China for two years starting the date local regulatory approvals are provided. During this period the distributor is committed to purchase from Medigus, systems for a minimum amount of $3.85 million.
The endoscopic system SRS™II performs a minimally-invasive treatment of Gastroesophageal Reflux Disease (GERD), one of the most common chronic diseases globally. The system includes a disposable endoscope.
Recently, a larger portion of the Chinese population has been diagnosed with GERD, which is well treated by the SRS™II System. This is after a long period that the observation and treatment of this disease were not routine in Asia. In 2008 research showed that 6.2% of the Chinese population in Shanghai suffered from GERD. Another report demonstrated that up to 7.28% of the population suffered from GERD in a region in Eastern China. These numbers compare to estimates of approximately 7% in the Western World. It is important to note that Esophagus cancer is five times more common among GERD patients (seven times more common among patients experiencing daily spasms), and is the fourth highest death factor among the cancer patients in China. This rate is significantly higher than in the Western world.
Dr. Elazar Sonneschein, Medigus CEO commented on the agreement: "Medigus has developed an innovative solution to treat GERD and we're in the process of penetrating new markets. We believe that the launch of the SRS™II System in China and the association with the leading distributor in the Chinese healthcare industry is a major milestone in the company's efforts to market the systems globally, specifically in Asia. Medigus is also having various discussions with nationwide distributors and strategic agents to cooperate in the marketing and sales of the systems in Europe and other areas."
The distributor will commence the process of obtaining local regulatory approvals for the importing and marketing of the SRS™II Systems in China, including registration at the SFDA (State Food and Drug Administration of China), the official Chinese regulatory governmental office for food, medical device and medications.
The consulting Company TBN assisted during the negotiation of the agreement.
About Medigus Ltd.
Medigus (TASE: MDGS) is a medical device company headquartered in Omer, Israel, specializing in developing innovative endoscopic procedures and devices. Medigus is a pioneer developer of a unique proprietary endoscopic device for the treatment of GERD, one of the most common chronic diseases in the western world. In addition, Medigus has developed the world's smallest camera for endoscopic use as well as for other medical and industrial applications.
Based on its proprietary technologies, Medigus designs and manufactures endoscopy systems, for partner companies, including major players in the medical device industry. Medigus has an advanced technology platform that includes all necessary elements for performing a wide range of endoscopic procedures. The platform includes various types of rigid, semi-flexible and flexible video endoscopes, as well as respective endoscopy suites.
For more information please visit: http://www.medigus.com
Hayden/ MS-IR LLC
SOURCE Medigus Ltd