Brainsway® is pleased to announce that on January 1st, 2012, it entered into an exclusive agreement for the distribution of the Deep TMS devices with a Chilean company specially formed for the purpose, and owned by a business group in the pharmaceutical industry.
Pursuant to the agreement, the distribution company has been granted exclusive rights to market and promote sales of the Deep TMS device in Chile for 10 years. The retention of these exclusive distribution rights for the duration of the contractual period (except during the first three years) is contingent upon the distribution company’s renting out the contractually specified minimum number of Deep TMS devices each year.
According to the agreement, the distribution company will promote, market and distribute the Deep TMS device in Chile for the treatment of major depression, schizophrenia, bipolar depression, Parkinson’s disease, post-traumatic stress disorder, and any other indication approved by the Chilean authorities. Brainsway will provide the distribution company with the devices it orders, and the distribution company, in turn, will be responsible for renting out these devices and installing them at the clients’ facilities (i.e. private practices, clinics and hospitals). Furthermore, the distribution company has undertaken to set up specialized Deep TMS treatment centers utilizing Brainsway’s proprietary device. Clients will pay the distribution company a fixed fee for each device, or alternatively, a “pay-per-use” fee based on the number of treatments administered using each device. The cost to clients will be determined by the distribution company alone. The Deep TMS devices will remain at all times the property of Brainsway Ltd.
The distribution company will pay Brainsway a fixed monthly fee for each Deep TMS device provided. Brainsway reserves the right to switch to a “pay-per-use” charging mechanism, whereby it will be paid for each treatment administered using the Deep TMS devices (but in any event no less than a minimum agreed-upon fee).
The distribution company has undertaken to obtain all the regulatory approvals necessary for the marketing of the Deep TMS device in Chile for its various indications no later than April 30, 2012. The distribution company has further undertaken to obtain commitments from major healthcare service providers and insurance companies in Chile to provide coverage for treatments using the Deep TMS device.