A small Winnipeg medical diagnostic company has finalized a deal that paves the way for the sale of up to $90 million worth of its non-invasive diabetes screening devices in China.
The definitive agreement between Miraculins Inc. and Catalyn Medical Technologies Ltd., a Hong Kong-based medical device import company, provides for an initial minimum guaranteed order for $15 million worth of Scout DS devices, and for at least another $75 million worth of orders over the subsequent four years.
The two partners also announced that Cachet Pharmaceutical Co., Ltd., a majority-state-owned stock company, has been appointed as the exclusive distributor of the devices in Mainland China.
"I am very pleased to confirm that Miraculins has now executed an agreement that allows for the sale and distribution of Scout DS devices into China, which represents a significant potential revenue stream for the company over the term of the agreement," Miraculins president and CEO Christopher Moreau said in a statement issued today.
"With Cachet Pharmaceutical appointed as our exclusive distributor for Mainland China, we are confident that we have the right partner in place to penetrate the marketplace and bring this new testing technology to millions of Chinese at risk and in need," Moreau added. "This is truly a transformative agreement for Miraculins and for the Scout DS device as a ground-breaking disease screening technology."
The Scout DS is a non-invasive test to measure diabetes-related biomarkers in the skin. It does not require a blood sample or fasting, and generates a result in as little as 80 seconds.
Miraculins said it will be responsible for leading the effort to secure regulatory approval for the product from the China Food and Drug Administration. The device has already received regulatory clearance in Canada and is also marketed throughout the European Union.