CardiacSense, in which the stock-exchange listed Merchavia Holdings and Investments Ltd. is invested, has announced the signing of an agreement worth a minimum of $8 million over four years for the marketing of its vital signs monitoring watch in the United Arab Emirates (UAE). Sales of the product will start in 2021. The agreement in the UAE is one of several distribution agreements that the company has signed in the past few months and that, if they are realized, will be worth a minimum of $70 million in the coming years. A week ago, CardiacSense signed a distribution agreement in Switzerland, following agreements in Turkey, Spain, Australia, Latin America, and South Africa.
Following today's announcement, the share price of Merchavia, which has a 5.7% stake in CardiacSense, rose to give it a market cap of NIS 43 million. In the past year, Merchavia's share price has risen by 128%.
CardiacSense has developed a wristwatch for remote monitoring of body temperature and identification of conditions such as heart arrhythmia and chronic diseases. CardiacSense will sell the watch together with monitoring and data analysis service on the company's cloud and alerts to the relevant medical systems.
"The new agreement opens the door for innovative, patent-protected Israeli technology to markets that up to now had avoided using technology of Israeli origin," said Eyal Copitt, chief commercial officer at CardiacSense. "Trials we have carried out demonstrate that the product's efficiency in detecting a range of heart and respiratory problems reaches an accuracy level of 99%.
"We believe that this collaboration between an Israeli digital medicine company and a distribution company from the UAE will contribute towards strengthening political ties between Israel and countries of the region, and will lead to cooperation with additional countries in the Persian Gulf in the future," Copitt said.
Merchavia is controlled by Leon Goldstein and Rani Lifshitz. It recently made an exit from digital health company RMDY, and has minority stakes in several other healthcare technology companies.
Published by Globes, Israel business news - en.globes.co.il - on September 14, 2020
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