JERUSALEM, Sept. 23, 2013 (GLOBE NEWSWIRE) -- Brainsway Ltd. (TASE:BRIN) ("Brainsway" or the "Company") is pleased to announce the execution of an agreement for the marketing and distribution of its Deep TMS device in Japan with Century Medical Inc. ("Century Medical" or the "Distributor"), a Japanese company from the ITOCHU Group.
Under the agreement, Century Medical will have an exclusive right for the distribution of Brainsway's Deep TMS systems for treating Major Depressive Disorder in Japan for a period of ten years. The agreement will be extended by five additional years in the case that Century Medical meets the minimum revenue thresholds stipulated by the agreement. Century Medical also has a right of first offer option for the distribution of Brainsway's Deep TMS technology for additional indications in Japan. It should be noted that the Distributor is committed to achieving the necessary regulatory approvals to market the Deep TMS device for various indications in Japan at its sole expense.
Once marketing in Japan commences, the Company will be responsible for the manufacture and delivery of the Deep TMS systems while the Distributor will be responsible for the rental thereof to customers, including the provision of all necessary installation, training and maintenance services. The devices will remain the exclusive property of Brainsway at all times. Century Medical will pay Brainsway for each Deep TMS treatment performed, subject to prescribed annual minimums per device. The agreement provides a minimal annual threshold of total payments to Brainsway. If the Distributor fails to meet the minimum standard set for any given year, the Company will have the right to terminate the distribution agreement, unless otherwise mutually agreed by the parties.
Century Medical will pay 190 million Japanese yen (US$ 2 million) for the distribution license (the "Distribution Fee") in two installments: an advance payment of 100 million yen and an additional 90 million yen upon Century Medical receiving approval for marketing the Deep TMS system in Japan. Brainsway will return 10% of the Distribution Fee at the end of each year that Century Medical meets its set revenue targets.
Uzi Sofer, CEO of Brainsway, said, "We are pleased and proud to sign a distribution deal in Japan with an excellent distribution company owned by Japanese giant, ITOCHU Corporation. The negotiation process was long and fascinating, but now that the agreement has been signed, and since our distributor is very strong in that country, I believe that we will be successful in quickly penetrating this large and important market."
Ronen Segal, Brainsway's CTO, commented, "After working with Century Medical for several months to come to this agreement, and based on their extensive track record of success in marketing and distributing new medical technologies in Japan, we are confident that we have chosen the ideal partner to bring Brainsway's groundbreaking technology to the Japanese market."
Yael Lahat, Director of Life Science and CleanTech at Harel-Hertz Investment House, Century Medical's representative in Israel, said, "The Japanese market is large and the promotion of business between Israel and Japan is important. We are proud to have worked with great companies like Brainsway and Century Medical and to be part of creating this powerful collaboration between the two companies."
About Century Medical
Century Medical, Inc. (CMI) is a wholly owned subsidiary of Itochu Corporation (8001:Tokyo Stock Exchange). CMI has more than 300 employees, offices in seven major cities in Japan and 39 years' experience marketing medical devices in Japan. CMI has been a pioneering force successfully introducing many new technologies to the Japanese healthcare community and has built a dedicated team of 40 sales and marketing people to serve the Japanese medical community.
About Brainsway Ltd.
Brainsway develops a medical device for the noninvasive treatment of common brain disorders. The device is based on a uniquely shaped electromagnetic coil connected to a rapidly changing current supply, which produces magnetic fields capable of affecting different areas of the brain. Deep brain areas can be either excited or inhibited, depending on the frequency of the magnetic field.
Forward-Looking Statements
This press release contains forward-looking statements identified by words such as "estimates," "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events, including, but not limited to, the potential and timing of regulatory approval to market and distribute Deep TMS systems in Japan and the potential success of Japanese commercialization of Deep TMS following said approval. These forward-looking statements involve risks and uncertainties, including the number of system orders received from the distributor and the Company's ability to complete the manufacture and delivery of these systems, that could cause the Company's actual results to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.