The Board of Directors of Milestone Medical Inc. (WAR:MMD, the Company, the Issuer) today announced that it has entered into an exclusive distribution agreement with Moss S.p.A. (“Moss”) for distribution of the epidural instrument in Italy. Moss is one of the leading distributors of diagnostic and specialty surgery equipment in Italy.
The term of the agreement between the Company and Moss is three years and includes annual minimum purchases of epidural instruments and disposable kits. The Issuer will provide sales literature, organize training classes and provide product, while Moss will be responsible for sales and marketing support, including advertising, product placement in catalogues, product displays and trade exhibits. Moss has also committed to hiring 15 sales representatives dedicated to the sale of the epidural instrument within the first year.
In the opinion of the Board of Directors of the Company, Italy is a viable market for the Issuer’s epidural instrument with over 1 million epidurals administered for surgery per year and over 60,000 epidurals administered for childbirth. Since its founding in 2000, Moss has demonstrated its ability to assess market needs and to successfully address those needs with innovative products in the medical arena. Moss’ extensive distribution capabilities in Italy will benefit the Company and the Issuer is pleased to have them as its exclusive distribution partner in the region.
The Company also announced plans to broaden its U.S. distribution strategy beyond the current focus on labor and delivery markets. While the Issuer’s prior distribution partner in the U.S. maintains a solid network within birthing centers across the U.S., the Company has decided after discussion with other distributors in the pain management sector that an exclusive arrangement in this arena was too limiting given the overlap between anesthesiologists in private clinics and hospitals. These practitioners that have the ability to use the Issuer’s instrument for both labor and delivery, as well as other pain management applications. In the U.S. alone, there are 8.9 million annual procedures that fall outside of the labor and delivery segment, many in private pain management clinics. As a result, the Company believes a build out of a network of regional distribution partners whose strengths include hospitals, clinics and pain management centers will give the Issuer far greater penetration in the broader US market. The Company looks forward to announcing these partnerships in the coming months and believes that this strategy will result in greater market penetration within the respective regions. At the same time, the Company’s U.S. trials are moving forward and the Issuer looks forward to announcing additional milestones in the near future.
Legal basis: Section 3.2 point 2) of the Exhibit 3 to the Alternative Trading System Rules “Current and Periodical Information in the Alternative Trading System on the NewConnect Market".
Osoby reprezentujące spółkę:
Joseph D'Agostino - CFO