Medical device holding company D Medical Industries Ltd. (TASE:DMDC) said today that its new subsidiary Sindolor Ltd., was on the verge of signing a contract with major drug company to distribute a product that the two companies have jointly developed.
D Medical says the partner is one of the world's five largest drug companies. Sources inform ''Globes'' that the company in question is apparently German giant Merck KGaA (XETRA: MRK), and that the contract could run into tens of millions of dollars over the coming years. D Medical and Sindolor did not disclose the identity of the partner nor the amounts agreed in the contract, but said that "In view of the fact that company has not yet completed its tests of the syringe, these could yet prove unsatisfactory, and the sides will not enter a contractual engagement in this instance."
Sindolor has developed a product called the Auto Injector, a syringe for home use that reduces pain and controls the dosage of the injected medication. The product has received US Food and Drug Administration (FDA) approval, and is due to receive CE Mark Certification as well.
Five months ago, D Medical acquired 50.1% of Sindolor for NIS 1.5 million and a commitment to repay a loan of NIS 1.86 million. Sindolor had $840,000 in debts to third parties, which reduced its value in the acquisition to just NIS 4.7 million. D Medical's share gained 10% following the announcement earlier today, and closed up 7.8%, giving the company a market cap of NIS 134 million.
Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2007
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