Medigus Progresses with Registration and Distribution Arrangements in China
OMER, Israel, July 14, 2015 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS) (TASE: MDGS), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technologies, announced today that it is progressing with the system testing towards registration for the receipt of CFDA (China Food and Drug Administration) approval. In connection with the registration for CFDA approval and the distribution of the Medigus Ultrasonic Surgical Endostapler (MUSE™) systems in China, Golden Grand (Shanghai Golden Grand-Medical Instruments Ltd.), sub-contracted through Sinopharm (China National Pharmaceutical Group Corporation), made an advanced deposit payment of $350,000 to Medigus towards the initial purchase of MUSE™ systems. Sinopharm currently owns the distribution rights for the MUSE™ system in China and, subject to the receipt of CFDA (China Food and Drug Administration) approval, has committed to a minimum purchase of $17.6 million worth of the MUSE™ system and related equipment over the course of four years, from the date of CFDA approval. Sinopharm has appointed Golden Grand, a Chinese company specializing in the distribution of medical devices, as its exclusive sub-distributor for the MUSE™ systems in China. Under the terms of the agreements with Sinopharm and Golden Grand, Golden Grand would issue the initial advance payment to Medigus once it provided documentation for CFDA clearance submission and sample systems for various regulatory tests. The advance deposit will be returned by Medigus (less any amounts for products ordered) if the regulatory approval is not achieved during the timeframe specified in the agreement. "With this endeavor we believe that Medigus will be able to achieve significant growth in this vital market, as well as offer an innovative gastroesophageal reflux disease (GERD) treatment to the Chinese population, which was previously unavailable," said Chris Rowland, Chief Executive Officer of Medigus. "GERD is on the rise worldwide, however there is a significant unmet treatment need for patients who fall within the gap between drug therapy and invasive surgical procedures. We believe that the procedure performed with the MUSE system is a revolutionary way to provide long-term relief from the burdensome symptoms of persistent GERD."
China National Pharmaceutical Group Corporation, Sinopharm, is the largest pharmaceutical and healthcare group under State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) in China. The group has 22 wholly-owned subsidiaries and holding companies, one H-share listed company, Sinopharm Group Co. Ltd., and three A-share listed companies, Beijing Tiantan Biological Products Corporation Limited (BTBP), China National Medicines Co., Ltd. (CNCM) and Shenzhen Accord Pharmaceutical Co. Ltd.. In 2009, the group's sale revenue had reached 65 billion Yuan. Among the 129 enterprises under SASAC, Sinopharm is ranked 50th and 38th in terms of sales revenue and total profit respectively.