Brainsway Ltd. (TASE:BRIN) has signed a distribution deal for its Deep TMS (transcanial magnetic stimulation) device for the treatment of neurological disorders with a Brazilian distributor. The distributor, whose name was not disclosed, received a ten-year exclusivity for marketing the device in Brazil. The company did not disclose the potential value of the deal.
The distributor undertook to purchase a minimum number of devices per year, gradually increasing over time, for a total of at least 1,000 devices for the contractual period. The distributor will also pay Brainsway for each treatment using the Deep TMS, but not less than the minimum amount set in the contract, except for the first year of use of each new device during which the distributor will pay a fixed sum.
The distributor also undertook to obtain the necessary regulatory permits for marketing the device in Brazil, and to obtain indemnity coverage for treatments from Brazil's large healthcare and insurance companies.
Brainway, run by CEO Uzi Sofer, is preparing an offering on Nasdaq. The company's share price rose 3.7% in morning trading to NIS 8.15, giving a market cap of NIS 331 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2010
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