BSP - Biological Signal Processing Ltd. (TASE:BSP) shares are retreating almost 3% today, and fell 7% yesterday. However, they soared 43.8% in one day - on Tuesday, after announcing that it signed a non-binding memorandum of understanding (MOU) with Hong Kong-based MedCare (Asia) Ltd. on a distribution contract for BSP's ECG analysis systems.
BSP shares are up 311% in 2009.
BSP estimates the minimum potential of the distribution contract at $23 million over four years.
MedCare will distribute BSP's HyperQ Stress System. The unit measures ECG signals during standard clinical stress tests. The distribution deal for that system is not exclusive, and not limited to specific territories.
BSP also intends to develop a new product based on its HyperQ technology which is added on to current ECG systems. For this product, the Medcare venture will get exclusive distribtion rights.
There will be an option to terminate if MedCare misses sales thresholds. BSP will also receive 7.5% of the venture that will be set up to handle the distribution.
BSP has a previous pilot distribution contract with MedCare for the marketing of products in Hong Kong and Macau. This contract is worth a few hundred thousand dollars.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2009
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