D. Medical ($DMED) is looking to take its insulin infusion set worldwide, inking a deal with South Korea's Twobiens to market the Spring Universal Infusion Set around the globe.
The three-year original equipment manufacturer agreement includes sales targets and order minimums, and is worth up to $5 million. Efri Argaman, CEO of the Israeli company, said the deal is part of the company's 2012 strategy to pursue opportunities for high-volume sales. "This partnership is expected to increase the pace of bringing our novel technology to more people with diabetes," he said in a statement. "At the same time, we continue to explore various licensing and other opportunities designed to maximize shareholder value."
In the very short term, at least, his strategy has worked. Israeli business publication Globes reports that D. Medical's shares rose by 32% after Friday's announcement. And the company could use a little good news: In March, it cited "challenging market conditions" in its decision to slash jobs and spending, staking its future on the Spring line of diabetes devices.
The Spring Universal Infusion Set, which already carries approvals in North America and Europe, is compatible with most insulin pumps, according to D. Medical, and it boasts the smallest inserter on the market, which is activated by a button. Furthermore, in the event of detachment, the company's inserter will block off insulin flow, preventing spillage and increasing safety.
- read the companies' release
- get more from Globes