Brainsway's Deep TMS System to be Marketed and Distributed in Japan
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
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
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.
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.
CONTACT: Stephen Kilmer
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