P&G to buy Israeli medical device co ConTIPI
The price could be as much as $100 million with milestone payments.
ConTIPI and Procter & Gamble have had a distribution agreement since 2007 based on royalties, which has so far been worth tens of millions of dollars. The current agreement will replace the distribution agreement, although many of the clauses in the agreement are similar. ConTIPI declined to comment on the report.
The joint business activities between ConTIPI and Procter & Gamble are in their formative stages with pilot projects in a number of countries. ConTIPI's product has approval from the US Food & Drug Administration (FDA) but is not yet being marketed in the US. The product will be launched in 2011.
ConTIPI is exceptional in Israel's biomed landscape, because its device will be sold as a consumer product in pharmacies without the need of a prescription, although with a doctor's recommendation. Entering this market independently would be very difficult and require enormous marketing resources.
ConTIPI was founded in 2002 and is based in Caesarea. It has raised $3 million to date.
Published by Globes, Israel business news - www.globes-online.com - on September 16, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010
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