NuGen M.D. Announces Middle East Distribution Agreements With Minimum Commitments of Over $2.5 Million for its InsuJet™ Needle-Free Injection Device
Delivering “Insulin Without Fear” for Diabetics in the Middle East
TORONTO, Ontario – March 29, 2022 – NuGen Medical Devices Inc. (TSXV: NGMD) (“NuGen M.D.” or the “Company”), a leader in needle-free drug delivery, is pleased to announce that it has signed two 5-year distribution agreements for two specific territories in the Middle East to distribute its InsuJet™ needle-free injection device and recurring components, providing better access and improving the self-care of diabetics who require insulin injections to manage their glucose levels and stay alive.
The first agreement, from a distributor in Yemen, dated March 22, 2022, represents a minimum of CA$1.4 million1 over the 5-year term and will commence upon regulatory approval from health authorities, anticipated in the early part of the second half of 2022.
The second agreement, from a distributor in Iran, dated February 27th, 2020 represents a minimum of CA$1.1 million2 over the first three years of the 5-year term with future commitments for the remaining 2 years of the agreement to be finalized in due course. NuGen M.D. is happy to note that the Company received regulatory approval in February of this year and has received the first purchase order under this agreement marking the beginning of the agreement.
In the Middle East and North Africa, a region which ranges from Iran in the north, Pakistan in the east, Sudan in the south, and Morocco in the west, an estimated 72.67 million adults have been diagnosed with diabetes, making up 13.6% of the world’s diabetics. That number is expected to increase to 135.7 million by 2045, representing the second highest expected increase (86%) in the world, according to the International Diabetes Federation. In 2021, diabetes-related health expenditures in the region reached US$32.6 billion. Despite these staggering statistics, only US$32.6 billion was spent on diabetes in the region, representing only 3.4% of the total spent on diabetes worldwide.
“The Middle East was always a target market for us given the high rates of diabetes in the region. We have now announced several Middle Eastern distribution agreements covering eight different territories and are looking forward to seeing our devices improve the lives of those requiring insulin and other medications,” said Michael Wright, CEO of NuGen M.D. “We continue to see strong demand from distributors for our devices and look forward to continuing to secure agreements for additional territories.”
NuGen M.D.’s needle-free injection system is the first ever self-administered needle-free injection system approved by Health Canada and gives access to safe, cost-effective drug delivery for the millions of patients who suffer from diabetes or other chronic illnesses.
About NuGen Medical Devices
NuGen Medical Devices is an emerging specialty medical device company focused on developing and commercializing novel drug delivery technologies. NuGen Medical Devices’ principal business is the development and commercialization of innovative needle-free injection devices and systems for the administration of subcutaneous medication. It is developing products using needle-free drug delivery technology in several important fields including, but not limited to, anaphylaxis, diabetes, severe migraine, erectile dysfunction, chronic anemia, neutropenia, autoimmune rheumatoid arthritis, growth and fertility hormone, psoriasis as well as DNA and conventional/pediatric vaccines.
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This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include the Company’s 2022 objectives of securing additional distribution and sales agreements, making submissions for regulatory approvals and capitalizing on additional market opportunities. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
1 EUR:CAD = 1.38
2 EUR:CAD = 1.38