The share price of Brainsway Ltd. (TASE:BRIN) jumped 6% during afternoon trading today to NIS 18.24 following its announcement that it had signed an exclusive distribution agreement for its Deep TMS (transcranial magnetic stimulation) device with a Chilean company, which was set up by local pharmaceutical professionals.
Under the contract, the distributor will have exclusive rights to market and sell the device in Chile for ten years. After the first three years, the terms of the contract require the distributor to lease a minimum number of devices annually, and at least 455 devices over ten years.
The Deep TMS device is for the non-invasive treatment of patients with cognitive damage from major depression, bipolar depression, schizophrenia, Parkinson's disease, as well as other uses approved by the authorities. Brainsway will supply the devices, and the distributor will be responsible for the leasing and installation of the product at the end user site, which will include private and public clinics, and hospitals. In addition, the distributor has committed to opening treatment centers that would house up to five Brainsway devices each, with two centers to be built during the initial stage. Patients will pay the distributor a fixed rate for each device, or a set amount depending on how many treatments he or she intends to undergo, and the distributor will have the exclusive right to determine the price to the patient. The devices will remain the property of Brainsway at all times.
The contract stipulates that the distributor will pay Brainsway a fixed monthly rate for each device. Brainsway has reserved the right to change billing conditions and require the distributor to pay for each treatment given using the Deep TMS device, with a minimum amount stipulated in the agreement.
Brainsway CEO Uzi Soffer, said today, "We are happy to begin the New Year on the right foot with another distribution agreement. We will supply devices manufactured in our new production system. The new Chilean distributor is a quality group with tremendous business experience in psychiatry and pharma, and extensive knowledge in TMS. 2012 will be an extremely important year for Brainsway, both in terms of clinical trials results, as well as for building a worldwide distribution and marketing network."
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2012
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