Shares in D Medical Industries Ltd. (Nasdaq: DMED); TASE:DMED) jumped in morning trading on the TASE, after the company's subsidiaries Spring Health Solutions Ltd. and Spring Set Health Solutions Ltd. signed an original equipment manufacturer (OEM) agreement with Twobiens Ltd., a South Korean supplier of diabetes treatment and drug delivery products. Twobiens will distribute Spring Universal Detach Detect Infusion Sets worldwide under its private label.
D Medical's share price rose 31.5% by midday to NIS 1.74, after closing at $0.32 on Nasdaq on Friday, giving a market cap of $2.7 million.
The three-year agreement includes sales targets and $5 million in minimum orders. D Medical and Spring Health will retain all their proprietary and intellectual property rights.
D Medical CEO Efri Argaman said, "In parallel with managing the ongoing strategic restructuring process that was announced in March 2012, we are pursuing major OEM and other high volume sales opportunities, such as this new partnership with Twobiens."
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2012
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