The share of Israeli company InsuLine Medical Ltd. (TASE: INSL) is attracting a great deal of attention today, after the company reported it had signed a memorandum of understanding with US healthcare giant Johnson and Johnson.
Under the memorandum of understanding, InsuLine and Johnson and Johnson will cooperate immediately in obtaining regulatory approval for marketing InsuPad, which reduces injected insulin uptake speed in diabetics by near 50%. Johnson and Johnson will also manage registration procedures with the various authorities. Once regulatory approval for marketing is obtained, the parties will negotiate a final binding distribution agreement for each territory, in which Johnson and Johnson will be the sole distributor. In addition to Russia, the agreement will also include Ukraine and other former Soviet Union countries Belarus, Armenia, Azerbaijan, Georgia, Kazakhstan, Kirgizstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. The registration procedure is likely to take a year.
InsuLine CEO Michael (Mike) Netz said, "InsuLine is continuing the expansion of the markets to which it sends the company's products, in line with its global commercial strategy. We are satisfied with the continued cooperation with Johnson and Johnson, which highlights both the vote of confidence from a global leader in diabetes and satisfaction with the joint activity up until now in Germany. It is important to stress that the Russian market is a large and significant market for InsuLine, and the cooperation will include planning, management, and carrying out penetration strategy."
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2015
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