Medigus (TLV:MDGS) announced today that it signed a non-binding memorandum of understanding (MOU) agreement with L-1 Systems for the licensing and sale of know-how and goods relating to the Medigus ultrasonic surgical endostapler (MUSE) system in Latin America.
The MOU agreement is worth $4 million, with Omer, Israel-based Medigus set to receive an additional $500,000 in consideration for support services, totaling the agreement at $4.5 million.
Both companies intend to use “commercially reasonable efforts” in negotiating and executing the agreement within 180 days from today, according to a news release.
If that goes to plan, it will become the second agreement to commercialize and license the MUSE system. The previous agreement, which was worth $3 million for Medigus, came with Golden Grand for the licensing and sale of the MUSE system in China, Hong Kong, Taiwan and Macao. Medigus said it plans to continue seeking new partners for such agreements in new territories worldwide.
MUSE is a single-use transoral stapler designed with an ultrasonic sight and range finder, along with a micro ScoutCam camera, to allow physicians to perform an incisionless transoral fundoplication in treating gastroesophageal reflux disease (GERD).