Sialo Technology Israel Ltd. (TASE: SALO) has signed an agreement with Germany’s Polydiagnost GmbH for the exclusive global marketing rights for the mini-endoscope developed by the company for treatment of salivary gland stones.
The deal is somewhat unusual in that international companies often sign a distribution contract for a medical device developed by an Israeli company, while here it is the reverse. Polydiagnost specializes in the general endoscope market, and is not involved in the dental products market, which is Sialo’s core business.
Polydiagnost is not one of the endoscope market leaders, mainly because of the price of its products, which is substantially higher than the prices of its competitors.
Sialo manufactures disposable products for an endoscopic procedure for the removal of salivary gland stones developed by Prof. Oded Nahlieli, who manages the oral and jaw surgical department at the Barzilai Medical Center in Ashkelon. Nahlieli also helped found the company. Today, the company only sells the disposable products, and hospitals must buy the endoscope from other sources. Today’s agreement with Polydiagnost enables Sialo to sell a complete package that includes both the endoscope and disposable peripherals. The products already have EU CE Mark approval, and Sialo has undertaken to register the endoscope with the US Food and Drug Administration (FDA).
Published by Globes [online], Israel business news - www.globes.co.il - on October 17, 2007
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