Guided Therapeutics (OTC:GTHP) said last week it inked an exclusive distribution, sales and manufacturing rights deal for its LuViva advanced cervical scan system with Shandong Yaohua Medical Instrument Corp.
Through the deal, Shandong Yaohua will retain exclusive distribution, sales and manufacturing rights in China, Taiwan, Hong Kong and Macau.
The deal includes a $1 million licensing fee from Shandong as well as a minimum purchase of 10 LuViva advance cervical scan devices in 2017, and royalties for disposables once Chinese FDA approval is obtained, Nashua, N.H.-based Guided Therapeutics said.
Guided Therapeutics said it issued $1 million in shares of common stock to Shandong Yaohua, who will manage trials necessary to apply for CFDA clearance.
“LuViva is the ideal product to address this critical women’s health concern, which is a national priority for eradication in China. The combination of early detection and immediate results makes the LuViva appealing to the healthcare professional as well as the patient and her family,” Shandong Yaohua chair Li Yaohua said in a prepared statement.
Shandong Yaohua will establish manufacturing lines for LuViva within its existing manufacturing facilities, which could lower the cost for the LuViva device and disposables globally, Guided Therapeutics said.
“We are pleased to be partnering with Shandong Yaohua to bring LuViva to China and improve early detection in a market where cervical cancer, often found too late, is the second leading killer among women’s cancers. The agreement also opens up the possibility to bring efficiencies to our manufacturing processes as well as opening up additional markets in East Asia,” Guided Therapeutics CEO & prez Gene Cartwright said in a press release.