Medigus Ltd. (MDGS)

[midastouch017]

Medigus expands MUSE distribution deal in China; shares ahead 8% premarket

Jul. 18, 2017 8:22 AM ET|About: Medigus Ltd (MDGS)|By: Douglas W. House, SA News Editor
Thinly traded nano cap Medigus Ltd. (NASDAQ:MDGS) perks up 8% premarket on robust volume in response to its announcement that strong interest in its Medigus Ultrasonic Surgical Endostapler (MUSE) in China is the driver behind the expansion of its exclusive distribution agreement with Golden Grand.

The expanded deal includes a commitment by Golden to buy at least $27M of MUSE systems and related equipment over a period of five years after CFDA approval. The prior deal specified a commitment to buy $17M worth of kit.

The MUSE system is a single-use transoral stapler that incorporates an ultrasonic sight and range finder and a micro ScoutCam CMOS camera, enabling a single doctor to perform an incisionless transoral fundoplication (a procedure to treat the anatomical cause of gastroesophageal reflux disease or GERD). Since the device does not require any incisions, there is much less discomfort for the patient during the procedure with hospital stays reduced by up to 50%.