BSD Medical Announces Exclusive Multi-Million Dollar Distribution Agreement
with Terumo Europe NV for MicroThermX® Microwave Cancer Ablation System
*Terumo Europe NV is a wholly owned subsidiary of global medical device
leader Terumo Corporation, which has nearly $5 billion in annual sales and
operations in over 160 countries
*Exclusive agreement for distribution in 100 countries; potential market
size in excess of $1 billion in annual sales
*Agreement expected to drive BSD revenue growth toward profitability
SALT LAKE CITY -- April 08, 2013
BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a
leading provider of medical systems that utilize heat therapy to treat cancer,
announced today that the Company has signed an exclusive, long-term,
multi-million dollar distribution agreement with Terumo Europe NV, a wholly
owned subsidiary of Terumo Corporation (Terumo), for the MicroThermX^®
Microwave Ablation System (MicroThermX^®).
A world leader in state-of-the-art medical devices and interventional
oncology, Tokyo-based Terumo Corporation (TYO: JP:4543) reported 2012 sales of
nearly $5 billion and has a market cap in excess of $8 billion. Through the
sale and promotion of a high quality line of devices used for tumor
embolization, the closing or blocking of blood vessels, Terumo Europe NV has
established itself as a pioneer in the field of interventional oncology.
Embolization and ablation are "hand-in-hand" clinical procedures for the
treatment of cancerous tumors and, when used together, enable a less invasive
course of treatment. This agreement therefore creates an ideal product synergy
with BSD’s MicroThermX^® product line and enables Terumo Europe NV to offer
interventional oncologists a complete and compelling solution for the
treatment of cancerous tumors.
Under the terms of the distribution agreement, Terumo Europe NV will have the
exclusive right to market MicroThermX^® in 100 countries in Europe, Western
Asia, and Northern Africa. The potential market size for MicroThermX^® in
these countries is estimated to be in excess of $1 billion in annual sales.
This agreement validates the large market opportunity for MicroThermX^®
ablation products and is expected to drive market adoption for the
MicroThermX^® as a leading ablation therapy system. Strategically,
MicroThermX^® will benefit from Terumo Europe NV’s extensive market reach,
focus on interventional oncology, and well-established relationships with key
interventional oncology opinion leaders throughout Europe.
"Our distribution agreement with Terumo Europe NV is the result of a
collaborative effort between BSD Medical and Terumo. Importantly, it
represents one of the most significant milestones in BSD’s corporate history,"
said Harold Wolcott, BSD President and CEO. "Revenues from our agreement with
Terumo Europe NV should commence by the end of the third quarter of our fiscal
year 2013 and are expected to make a substantial contribution to our overall
revenue over the next few years. Longer term, we expect this agreement will
make a strong contribution toward our objective of achieving profitability."
About the MicroThermX^® Microwave Ablation System
The MicroThermX^® is a compact, mobile, state-of-the-art, proprietary system
that includes a microwave generator, single-patient-use disposable antennas,
and a thermistor-based temperature monitoring system. The innovative design of
the MicroThermX^® is the first of its kind that allows delivery of higher
power levels using a single generator. The MicroThermX^® utilizes innovative
synchronous phased array technology that was developed and patented by BSD to
provide larger and more uniform zones of ablation during a single procedure.
The MicroThermX^® introduces into the Company’s product line innovative,
high-end disposables (SynchroWave antennas) that are used in each ablation
treatment and will provide a significant ongoing revenue stream. The soft
tissue ablation world market potential is estimated to exceed $2.3 billion.
The U.S. Food and Drug Administration (FDA) has granted the Company a 510(k)
clearance to market the MicroThermX^® for ablation of soft tissue. BSD has
also received CE Marking for the MicroThermX^® System, which allows BSD to
market the MicroThermX^® in Europe. CE marking is also recognized in many
countries outside of the EU, providing BSD the ability to market the
MicroThermX^® to a number of international markets.
About BSD Medical Corporation
BSD Medical Corporation develops, manufactures, markets and services systems
to treat cancer and benign diseases using heat therapy, which is delivered
using focused radiofrequency (RF) and microwave energy. BSD’s product lines
include both hyperthermia and ablation treatment systems. BSD’s hyperthermia
cancer treatment systems, which have been in use for several years in the
United States, Europe and Asia, are used to treat certain tumors with heat
(hyperthermia) while increasing the effectiveness of other therapies such as
radiation therapy. BSD’s microwave ablation system has been developed as a
stand-alone therapy to employ precision-guided microwave energy to ablate
(destroy) soft tissue. The Company has developed extensive intellectual
property, multiple products in the market and established distribution in the
United States, Europe and Asia. Certain of the Company’s products have
received regulatory approvals and clearances in the United States, Europe and
China. For further information visit BSD Medical's website at
Statements contained in this press release that are not historical facts are
forward-looking statements, as defined in the Private Securities Litigation
Reform Act of 1995. All forward-looking statements are subject to risks and
uncertainties detailed in the Company's filings with the Securities and
Exchange Commission. These forward-looking statements speak only as of the
date on which such statements are made, and the Company undertakes no
obligation to update such statements to reflect events or circumstances
arising after such date.
BSD Medical Corporation
William (Bill) S. Barth, 801-972-5555
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