ISRAEL –IceCure MedTech, a wholly -owned subsidiary of IceCure Medical has signed a distribution deal with Shanghai Medtronic Zhikang Medical Devices, an affiliate of Medtronic and Beijing Turing Medical Technology.
Pursuant to the Distribution Agreement, IceCure Shanghai will sell the products to Turing, which will import the Products from Israel to mainland China, and resell them to Shanghai Medtronic.
Shanghai Medtronic will be the exclusive distributor of the IceSense3 and its disposable probes in mainland China for an initial period of three years, with minimum purchase targets of US$3.5 million for this period.
Shanghai Medtronic will also be responsible for marketing and promoting the products within mainland China, and holding professional medical education events for the products within mainland China.
Additionally, in mainland China, Shanghai Medtronic will not directly or indirectly invest or deal in, market, sell, promote or provide services to any product that competes with the IceSense3, during the term of the distribution agreement and for a period of six (6) months thereafter.
If Shanghai Medtronic meets the accumulated three-year Minimum Purchase Target, it will then have the right to extend the term of the Distribution Agreement for three consecutive years subject to an agreement on a new Minimum Purchase Target.
Turing will be responsible for warehousing, logistics, warranty services, training, and other support and after sale services of IceSense3 systems in mainland China.
Distribution agreement termination
The Distribution Agreement may be terminated in certain circumstances, including in the event of default, material breach or insolvency.
For instance, if IceCure Shanghai fails to obtain the Regulatory Approvals for the Cryoprobes within the agreed time, Shanghai Medtronic has the right to terminate the Distribution Agreement.
Furthermore, under the Distribution Agreement’s terms, IceCure Shanghai will be responsible for obtaining and maintaining any and all regulatory approvals in mainland China or any other government authorities (“Regulatory Agencies”).
IceCure Shanghai has already obtained Regulatory approvals for the IceSense3 system consoles and is required to obtain Regulatory Approvals for the disposable IceSense3 Cryoprobes for commercial procedures within nine months of the Effective Date of the Distribution Agreement.
IceCure Medical also develops and markets ProSense, an advanced liquid-nitrogen-based cryoablation therapy for the treatment of tumors (benign and cancerous) by freezing, with the primary focus areas being breast, kidney, bone and lung cancer.
Its minimally invasive technology is a safe and effective alternative to hospital surgical tumor removal that is easily performed in a relatively short procedure.
The system is marketed and sold worldwide for the indications cleared to-date by the US Food and Drug Administration (US FDA) and approved in Europe with the CE Mark.
ProSense’s mechanism of action
ProSense uses a computerized tomography (CT) scan or ultrasound in order to guide a probe that delivers liquid nitrogen into the tumor.
The sub-zero temperatures turn the tumor into an ice ball and a freeze-thaw-freeze cycle destroys the targeted tissue and leaves healthy tissue undamaged. The debris left the procedure is absorbed by the body.
The collaboration with IceCure and Turing Medical will supplement the product lines of Shanghai Medtronic’s neurosurgery business in tumor interventional treatment.
Even more, this collaboration will help promote the clinical application of cryoablation to benefit more tumor patients.
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