Central/Eastern European/Russian Distributor Expands LuViva Program by Signing Manufacturing, Supply and Royalty Agreement; Projects Purchases of $30 Million over 5 Years
NORCROSS, Ga.--(BUSINESS WIRE)--Dec 18, 2018--Guided Therapeutics, Inc. (PINK SHEETS: GTHP), the maker of a rapid and painless testing platform based on its patented biophotonic technology, announced that it has signed a limited Manufacturing, Supply and Royalty Agreement with its Central/Eastern European/Russian distribution partner Newmars Technologies, Inc.
The agreement enables Newmars to manufacture LuViva® Advance Cervical Scan devices in Hungary for distribution in the nine Central and Eastern European countries for which Newmars has distribution rights. GTHP will manufacture sub-assemblies and sell these and other parts to Newmars and will receive an additional $2,000 royalty for each device sold in those countries, which include Russia, Ukraine, Poland, Romania, Hungary, Moldova, Kazakhstan, Belarus and Armenia.
Guided Therapeutics will continue to sell single use, disposable Cervical Guides to Newmars and they are not part of the new agreement. Newmars projects sales of over 700 LuViva devices and over 1.5 million Cervical Guides. Combined with the previously signed distribution agreement, this new agreement is expected to generate approximately $30 million in revenues for GTHP over the next 5 years, with sales beginning in the second half of next year.
“We are encouraged by the work that Newmars has done so far in both Russia and Hungary and we are confident that there is a substantial market in Eastern Europe for LuViva,” said Gene Cartwright, CEO of Guided Therapeutics.
The population of the nine countries is nearly 300 million and the number of women of recommended cervical cancer screening age is over 70 million for these 9 countries.
About Guided Therapeutics
Guided Therapeutics, Inc. (PINK SHEETS: GTHP) is the maker of a rapid and painless testing platform based on its patented biophotonic technology that utilizes light for the early detection of disease at the cellular level. The Company’s first product is the LuViva® Advanced Cervical Scan, a non-invasive device used to detect cervical disease instantly and at the point of care. In a multi-center clinical trial with women at risk for cervical disease, the technology was able to detect cervical cancer up to two years earlier than conventional modalities, according to published reports. For more information, visit: www.guidedinc.com.
The Guided Therapeutics LuViva ® Advanced Cervical Scan is an investigational device and is limited by federal law to investigational use in the U.S. LuViva, the wave logo and “Early detection, better outcomes” are registered trademarks owned by Guided Therapeutics, Inc.
Forward-Looking Statements Disclaimer: A number of the matters and subject areas discussed in this news release that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from Guided Therapeutics’ actual future experience involving any of or more of such matters and subject areas. Such risks and uncertainties include those related to the early stage of commercialization of products, the uncertainty of market acceptance of products, the uncertainty of development or effectiveness of distribution channels, the intense competition in the medical device industry, the sufficiency of capital raised in prior financings and the ability to realize their expected benefits, the uncertainty of future capital to develop products or continue as a going concern, the uncertainty of regulatory approval of products, and the dependence on licensed intellectual property, as well as those that are more fully described from time to time under the heading “Risk Factors” in Guided Therapeutics’ reports filed with the SEC, including Guided Therapeutics’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and subsequent filings.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181218005514/en/
CONTACT: Mark Faupel
KEYWORD: ARMENIA UKRAINE UNITED STATES BELARUS EUROPE ASIA PACIFIC MOLDOVA NORTH AMERICA GEORGIA POLAND ROMANIA RUSSIA HUNGARY KAZAKHSTAN
INDUSTRY KEYWORD: HEALTH BIOTECHNOLOGY MEDICAL DEVICES ONCOLOGY
SOURCE: Guided Therapeutics, Inc.
Copyright Business Wire 2018.
PUB: 12/18/2018 09:46 AM/DISC: 12/18/2018 09:46 AM