Medigus and Golden Grand Expand Distribution Arrangement in China for $27M of MUSE Systems
OMER, Israel, July 18, 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 that the Chinese exclusive distribution agreement with Golden Grand (Shanghai Golden Grand-Medical Instruments Ltd.) has been expanded to account for the increased interest in Medigus Ultrasonic Surgical Endostapler (MUSE™) systems in China.
The expanded distribution agreement states that Golden Grand has committed to a minimum purchase of $27 million worth of the MUSE™ system and related equipment over the course of five years, from the date of CFDA (China Food and Drug Administration) approval. Golden Grand, a Chinese company specializing in the distribution of medical devices, will now serve as the exclusive distributor for the MUSE™ systems in China. These terms replace the former distribution agreement, which included a minimum purchase of $17 million worth of systems over the course of four years.
“The expansion of our distribution arrangement with Golden Grand confirms our continued commitment to bring the MUSE system to the Chinese market, offering an innovative gastroesophageal reflux disease (GERD) treatment to the Chinese population, which was previously unavailable,” said Chris Rowland, Chief Executive Officer of Medigus. “We are looking forward to our continued work with Golden Grand, and through our work together we believe we can help reduce the unmet treatment need for patients who fall within the gap between drug therapy and invasive surgical procedures.”
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 gastroesophageal reflux disease (GERD).