SANUWAVE Signs Definitive Agreement With MUNDIMED For Brazil JV With An Expected NPV Of Over $25 Million
Published: Sep 29, 2017
SUWANEE, GA--(Marketwired - September 28, 2017) - SANUWAVE Health (OTCQB: SNWV) announced today they have signed a binding definitive joint venture (JV) agreement with MUNDIMED in Brazil. The companies will split profits in the wound care arena while utilizing the dermaPACE® technology. The expected net present value (NPV) conservatively exceeds $25 million. SANUWAVE will receive undisclosed cash payments beginning September 30, 2017 and will continue through early 2019. The JV is expected to receive INMETRO certification and ANVISA registration in 2018 and begin showing revenue immediately upon approval. Initial devices will be shipped in 2017 for use by KOL's at the University of ABC.
SANUWAVE worked with Universus Global Advisors to select to MUNDIMED. Universus has extensive geographic and industry knowledge which allowed incredible access in Brazil. The process of identifying the right partner took two years, but in selecting MUNDIMED we have found the right partner. MUNDIMED is a business unit of GrupoMED, which is one of the largest wholesalers and logistics providers for pharmacies and drugstores in the country. MUNDIMED is a top wound care company in Brazil and will see their employee base double in the next twelve months from eight to sixteen.
Kevin Richardson CEO stated, "SANUWAVE is extremely pleased to form a joint venture with such a great partner like MUNDIMED. Unfortunately, the opportunity to treat DFU's in Brazil is very large. Luckily we have a great product and an experienced partner to execute the strategy."
"A transformative and innovative technology like SANUWAVE's dermaPACE device has a great opportunity in the Brazilian advanced wound care market for the treatment of diabetic foot ulcers. There has been no innovation in this market segment for a long time and we believe our partnership with SANUWAVE will put MUNDIMED and the joint venture in a strong competitive position within the Brazilian wound care market," stated Fábio Matsunaka, Director and Partner, MUNDIMED.
"We are pleased to have worked with SANUWAVE to provide a strategic market entry into Brazil with an ideal partner in MUNDIMED to bring the innovative dermaPACE technology to Brazil. The wound care market in Brazil is a very large opportunity, as evidenced by the significant prevalence of diabetes among our adult patient population. According to the International Diabetes Federation data, Brazil has 11.9 million adults diagnosed with diabetes. This represents the fourth largest in country population in the world and over 9% of the adult population. Reliable local studies indicate that 7% of diabetic adults develop diabetic foot ulcers, so the current DFU patient population in Brazil stands at over 800,000. So far, there are no effective curative treatments for DFU being used in the country, which has led to extremely high rates of lower limb amputations. The DFU is a true and very significant public health problem in Brazil, which certainly gives to the partnership between SANUWAVE and MUNDIMED an absolutely promising prospect in the Brazilian market," said Mauricio Grimoni, Partner, Universus Global Advisors.
About SANUWAVE Health, Inc.
SANUWAVE Health, Inc. (OTCQB: SNWV) is a shock wave technology company initially focused on the development and commercialization of patented noninvasive, biological response activating devices for the repair and regeneration of skin, musculoskeletal tissue and vascular structures. SANUWAVE's portfolio of regenerative medicine products and product candidates activate biologic signaling and angiogenic responses, producing new vascularization and microcirculatory improvement, which helps restore the body's normal healing processes and regeneration. SANUWAVE applies its patented PACE technology in wound healing, orthopedic/spine, plastic/cosmetic and cardiac conditions. Its lead product candidate for the global wound care market, dermaPACE, is CE Marked throughout Europe and has device license approval for the treatment of the skin and subcutaneous soft tissue in Canada, Australia and New Zealand. In the U.S., dermaPACE is currently under the FDA's de novo petition review process for the treatment of diabetic foot ulcers. SANUWAVE researches, designs, manufactures, markets and services its products worldwide, and believes it has demonstrated that its technology is safe and effective in stimulating healing in chronic conditions of the foot (plantar fasciitis) and the elbow (lateral epicondylitis) through its U.S. Class III PMA approved OssaTron® device, as well as stimulating bone and chronic tendonitis regeneration in the musculoskeletal environment through the utilization of its OssaTron, Evotron® and orthoPACE® devices in Europe, Asia and Asia/Pacific. In addition, there are license/partnership opportunities for SANUWAVE's shock wave technology for non-medical uses, including energy, water, food and industrial markets.
For additional information about the Company, visit www.sanuwave.com.
MUNDIMED is a company that specializes in the distribution of medicines and medical devices to the Brazilian hospital segment with a primary focus on the wound care business. MUNDIMED is a growing business unit of GrupoMED, a company that is a well-established leader in the pharmacy and drugstore distribution and logistics business in Brazil over the last 40 years.
Today GrupoMED employs 375 employees and operates 7 distribution centers located in 5 different states in the Brazilian territory.
In 2016, GrupoMED earned revenue of 160 million Reais and in 2017, it forecasts revenues of 280 million Reais, with 75% sales growth.
About Universus Global Advisors LLC
Universus Global Advisors provides strategic solutions to medical product companies seeking market entry and growth in Brazil and other Latin American markets. We provide strategic market assessments and create market development strategies for new, innovative technologies. With a thorough understanding of country-level reimbursement dynamics and a deep network of key stakeholders, we understand the key dynamics of market entry strategy across Latin America. In addition, our network of C-level relationships in the medical products industry across LATAM enables us to identify, introduce and manage strategic alliance and partner relationships that enhance enterprise value for our clients.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with the regulatory approval and marketing of the Company's product candidates and products, unproven pre-clinical and clinical development activities, regulatory oversight, the Company's ability to manage its capital resource issues, competition, and the other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Universus Global Advisors
Universus Global Advisors
+55 11 9.9196.5033
Millennium Park Capital LLC
SANUWAVE Health, Inc.
Kevin Richardson II
Chairman of the Board