NuGen M.D. Signs 5-Year Master Distribution Agreement with Mexico Distributor for its InsuJet Needle-Free Injection Device
Agreement Provides Minimum Commitments of 34,000 Devices plus Recurring Components Representing ~CA$23M1 in Revenue Over the 5-Year Term
TORONTO, ON / ACCESSWIRE / October 25, 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 a distribution agreement (the “Agreement”) with Science – Link Trading, a company whose mission it is to help bring new disruptive technologies to market.
NuGen’s needle-free injection system, also known as InsuJet™, is a self-administered needle-free injection system. It gives access to safe, cost-effective, and virtually pain-free drug delivery for the millions of patients who suffer from diabetes or other chronic illnesses. The InsuJet™ also holds a CE Mark and is approved for sale in over 40 countries around the globe. Science – Link Trading has also initiated the COFEPRIS regulatory approval process.
The Agreement, signed October 17, 2022, represents a minimum of ~CA$23M over the 5-year term and includes minimum commitments of 34,000 InsuJet™ devices plus additional accessories and is in line with the Company’s 70% gross margin target. NuGen expects to receive the first purchase order under this agreement in Q4 2022.
“Science – Link Trading’s mission is to help bring new disruptive technologies to market,” said Juan Carlos Feregrino, President & CEO of Science – Link Trading. “We are really pleased and excited to have been granted master distribution for the InsuJet™ needle-free injection device for insulin therapy from NuGen for the Mexican market. We are certain that the InsuJet™ technology will improve the lives of millions of diabetic patients, making their treatment more friendly, less traumatic, and easier to use on a daily basis. We also expect to have a very important and positive impact on dangerous waste management and reduce accidental needle infections in addition to considerably reducing syringe waste. We are committed to encouraging the use of NuGen’s needle-free technologies in other markets such as health institutions for different therapeutic applications like vaccines and to introduce this technology to veterinary applications.”
“Our North American expansion is well underway and this agreement with Science-Link Trading now covers another major market, Mexico, that has a high prevalence of diabetes. We believe the introduction of the needle free InsuJet™ will bring significant benefits to the over 14 million people living with diabetes in Mexico,” said Michael Wright, CEO of NuGen. “Based on our internal analysis, each device sold represents ~CA$6801 in revenue including the recurring components over the ~3 year lifetime of a device. With minimum commitments of 34,000 devices over the 5-year term, this represents over CA$23 million in sales over the life of those devices.”
According to a recent study completed by the International Diabetes Foundation (IDF), 1 in 6 adults (over 14 million people) are currently living with diabetes in Mexico. The study also found that almost half of those living with diabetes in the country are undiagnosed and that diabetes-related health expenditures in Mexico has now reached US$20 billion2.
The Company also announces that, further to its press release on September 8, 2022, its previously announced non-brokered private placement of units in the amount of CA$640,376.30 (the “Unit Offering”), received final acceptance from the TSXV.
About Science – Link Trading
Science – Link Trading’s mission is to help bring new disruptive technologies to market. The company was formed as an initiative of our founders who have combined experience of over 60 years in the health, wellness and agribusiness sectors. We aim to be the leading company in the commercialization and distribution of new health and wellness disruptive technologies in Mexico within the next 5 years. Dr. Rene Anguiano Martinez has 40 plus years of experience in the radiology and lab analysis sector, and his company is the market leader in central Mexico. Master. Salvador De la Fuente has 25 plus years of experience in special materials and specialized infrastructure development. Juan Carlos Feregrino has 25 plus years of experience in the dairy food and health and wellness sectors and has participated in product development and market product launches and has participated in several international patents.
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.
For further information, please contact:
President and CEO
NuGen Medical Devices Inc.
Investor Relations Contact:
Kin Communications Inc.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 Based on 5,000 injections per device, dependent on the patient using 3ml or 10ml vials, the dosage of insulin and the frequency of injections per day.