D Medical Industries Ltd. (Nasdaq: DMED); TASE:DMDC), which develops insulin pumps and drug delivery systems through its subsidiaries, has reached a distribution agreement in Greece with Pharmaserve-Lilly SACI, a joint venture between Greece's Pharmaserve SA and Eli Lilly and Company (NYSE: LLY) of the US. Pharmaserve-Lilly will distribute the ADI durable insulin pump, related consumables and the universal detach detect infusion sets.
The mutually exclusive three-year agreement will begin on the date of Pharmaserve-Lilly's first order and will be automatically renewed for one-year periods, unless one of the parties notifies the other to cancel it with six months prior written notice. The companies have agreed to set a yearly sales target.
D Medical cites a report by the International Diabetes Federation, which says that there are 754,000 diabetics in Greece, 8.8% of its population.
D Medical CEO Efri Argaman said, "D Medical continues to roll out its products in Europe in support of expanding its global brand and product recognition. We expect to continue executing this strategy as we also prepare to launch into our five initial target markets - Mexico and the BRIC countries of Brazil, Russia, India and China - commencing in 2011.”
D Medical's share closed at $5.19 on Nasdaq on Friday, giving a market cap of $32 million. The share rose 2.9% in early trading on the TASE today to NIS 19.20.
Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2010
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