Misonix (NSDQ:MSON) said today it inked an $11 million licensing and exclusive manufacturing deal with Chinese Hunan Xing Hang Rui Kang Bio-Technologies for Misonix’s SonaStar product line in China, Hong Kong and Macau.
Through the agreement, Misonix will receive $5 million in upfront technology license fees and stocking orders as well as minimum royalty payments from the sale of SonaStar products of $2 million per yer between 2019 and 2021 and additional royalties through August 2027.
“Working with Misonix represents a unique opportunity to add an important technology to our suite of products. SonaStar is an advanced technology engineered to provide powerful and precise ultrasonic aspiration with maximum control and ease-of-use. We are dedicated to bring these important benefits to our markets in The People’s Republic of China, Hong Kong and Macau,” Hunan Xing Hang Rui Kang Bio-technologies chair Quan Li said in a prepared release.
Through the agreement, Farmingdale, N.Y.-based Misonix said it will supply SonaStar products to Hunan Xing Hang Rui Kang Bio-Technologies at previously agreed to prices during the transition period before manufacturing begins, with reimbursement of tech transfer costs to Misonix of up to $1 million.
“We look forward to working with the team at Hunan Xing Hang Rui Kang Bio-Technologies Co. to establish our SonaStar technology throughout The People’s Republic of China, Hong Kong and Macau. We will be focused on assisting them to effectively and efficiently manufacture the SonaStar product line once they complete the required manufacturing facilities. In the meantime, we will supply them the product they need to begin to establish the SonaStar product line in these important and fast-growing markets. This is an important technology that will result in better patient outcomes with cost-effective treatment modalities,” prez & CEO Stavros Vizirgianakis said in an SEC filing.
“We are extremely excited to be partnering with the team at Hunan Xing Hang Rui Kang Bio-Technologies Company to bring our SonaStar technology to The People Republic of China. Both organizations share a common commitment to improving the lives of patients with our therapeutic ultrasonic surgical technology,” Misonix sales & marketing SVP Scott Ludecker said in a prepared statement.
In March, Misonix said it inked an exclusive distribution agreement with Shandong Weigao Orthopedic Device Company.