Ortoma has Agreement on Non-binding Term Sheet for Exclusive Distribution Rights in Japan
Ortoma has agreement on a non-binding term sheet with a major global orthopedics implant and MedTech manufacturer for exclusive distribution rights of the Ortoma Treatment Solution for hip surgery in Japan. The next step in the process is to sign a binding definitive agreement.
With the term sheet, the parties have a preliminary understanding of the principal commercial terms for the distribution rights of Ortoma Treatment Solution (OTS) in Japan. The term sheet covers exclusive distribution rights for OTS for hip replacement surgery including the products OTS Hip Plan and OTS Hip Guide for an initial term of 7 years. The potential income for Ortoma may, subject to a definitive agreement, be a combination of fixed fees and on-going variable fees but cannot be quantified at this stage.
“I am very pleased for this first step and the possibility to take OTS for hip replacement surgery to the Japanese market with a major industrial partner. The term sheet is the result of a longer period of negotiations. We are looking forward to the next steps to support our partner for a successful launch on this strategically important market. We believe this partnership has the possibility to offer a competitive advantage in the market that will be a foundation for future growth”, says Linus Byström, CEO Ortoma AB.
The agreement on the term sheet triggers filing of a regulatory application for marketing approval in Japan. The application can be approved within 4-6 months after filing the application. The underlying documentation for filing the regulatory application has already been prepared by Ortoma, who will bear the cost for the application in case a definitive agreement is not reached.
Ortoma’s objective is to sign the binding definitive agreement before the regulatory application is approved.