Medigus Broadens Availability of MUSE(TM) Through Distribution Agreement With ADMEDICS AG in Switzerland and Liechtenstein
OMER, ISRAEL--(Marketwired - Jul 26, 2017) - Medigus Ltd. ( NASDAQ : MDGS ) ( TASE : MDGS ), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, today announced a distribution agreement in Switzerland and Liechtenstein with ADMEDICS AG (Advanced Medical Solutions AG), a distributor of minimally invasive medical devices. The commercialization agreement will take effect July 1, 2017; ADMEDICS AG will be required to purchase a minimum of EUR 1.8 million of Medigus Ultrasonic Surgical Endostapler (MUSE™) equipment over the course of the five-year agreement.
"The introduction of a minimally invasive treatment option such as MUSE™ into Switzerland and Liechtenstein will greatly benefit gastroesophageal reflux disease (GERD) patients," said Hans Jäggi, President, ADMEDICS AG. "MUSE™ addresses the unmet treatment need for patients who can no longer rely on drug therapy. This minimally invasive and more cost-effective option can benefit these patients, their doctors and the healthcare system at large."
"GERD is a highly prevalent disease in Western countries, so we are excited to expand availability of MUSE™ to Switzerland and Liechtenstein, two development markets that will greatly benefit from it, " said Chris Rowland, Chief Executive Officer of Medigus. "We are pleased to have ADMEDICS AG as our partner, and our distribution agreement is an important milestone for expanding market access to our product."
The MUSE system is a single-use flexible transoral stapler that merges the latest advancements in microvisual, ultrasonic and surgical stapling. The device comes equipped with an ultrasonic sight and range finder and a micro ScoutCam™ CMOS camera, which enables a single physician to perform an incisionless transoral fundoplication -- the procedure intended to treat the anatomical cause of GERD, commonly referred to as acid reflux.
Those who experience symptoms such as heartburn or regurgitation twice a week or more, may be at risk for persistent GERD.
EXPLANATORY NOTE
On July 19, 2017, Medigus Ltd., or the Company, has entered into an exclusive distribution agreement with Admedics Advanced Medical Solutions AG, or the Agreement. Under the terms of the Agreement, Admedics Advanced Medical Solutions AG, or Admedics AG, will act as the Company’s exclusive distributor in Switzerland and Lichtenstein for a period of five years commencing as of July 1, 2017. The Agreement requires Admedics AG to purchase minimum annual quantities of the Company’s products, which are expected to amount to at least EUR 1.8 million during the term of the Agreement. Under the terms of the Agreement either party may, at its sole discretion, terminate the Agreement immediately upon the occurrence of: (i) a failure of the other party to perform a material covenant, which is not cured within the time period set forth thereto, (ii) a breach of the other party’s warranties or representations, which, if curable, is not cured within the time period set forth thereto, or (iii) the other party’s insolvency, inability to pay debts, bankruptcy or was appointed a receiver; provided, however, that such failure, breach, status or appointment, if curable, is not cured within the applicable period of time set forth thereto. In addition, the Company may terminate the Agreement immediately, in the event Admedics AG: (a) engages in a competing activity not in accordance with the terms of the Agreement, (b) does not order the minimum annual quantities set forth under the Agreement, (c) has all or a substantial portion of its assets assigned, conveyed, or sold to an entity who engages in a competing activity with the Company, or (d) otherwise does not comply with the terms of exclusivity or with its respective warranty obligations.
In connection with the Agreement, on July 26, 2017, the Company issued a press release titled: “Medigus Broadens Availability of MUSE™ Through Distribution Agreement With ADMEDICS AG in Switzerland and Liechtenstein.” A copy of this press release is furnished herewith as exhibit 99.1.
