Brainsway Ltd. (TASE:BRIN) has announced a new distribution agreement with Century Medical Inc., a Japanese company from the ITOCHU Group, specializing in the import and distribution of medical devices and equipment in Japan.
Under the agreement, Century Medical will have an exclusive right for the distribution of Brainsway's Deep TMS systems for treating Major Depressive Disorder in Japan, for a period of ten years. The agreement will be extended by five additional years in the case that the distributor meets the minimum income thresholds stipulated by the agreement. The distributor also has an option for distribution of Brainsway's Deep TMS technology for additional indications in Japan.
Century Medical will pay 190 million Japanese yen (NIS 6.8 million) for the distribution license, in two installments: an advance payment of 100 million yen, and an additional 90 million yen upon receiving approval for marketing the system in Japan.
Following the announcement, Brainsway's share price rose 4%, giving it a market cap of NIS 681 million.
Japan is the second largest medical devices market in the world. Brainsway CEO Uzi Sofer said today, "The process in Japan is especially long. It took about a year to conclude the negotiations, but now the agreement has been signed, and since our distributor is very strong in that country, I believe that we will not have any undue difficulty in penetrating the market."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2013
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