Current Report No 4/2024
Date of preparation: 12.02.2024
Legal basis: Art. 17 para. 1 of MAR Regulation – confidential information
Medicalgorithmics
S.A., headquartered in Warsaw _quot;the Company_quot;, is to announce a new
distribution agreement ‘Distributorship Agreement’ with Bittium
Biosignals Ltd, a subsidiary of the globally recognized Bittium
Corporation, listed on NASDAQ Helsinki and known for its expertise in
arrhythmia diagnostic devices _quot;the Agreement_quot;. This Agreement enables
Bittium _quot;the Partner_quot; or _quot;Distributor_quot; to distribute the Company’s
software as part of its product offerings. Although the software will be
marketed under the Distributor’s brand, it will be clear to medical
clients and diagnostic facilities that Medicalgorithmics is the provider
of both the software and the diagnostic reports.
Under the
Agreement, the Company grants the Partner the rights to distribute its
software globally as a non-exclusive Distributor. The software includes
cloud-based solutions and artificial intelligence AI algorithms for
analyzing ECG signals from diagnostic sessions using the Partner’s
devices. It also facilitates the verification of AI results by ECG
technicians and doctors and the preparation of medical reports for
patient diagnostics. The software will be integrated to work exclusively
with signals from the Partner’s distributed devices.
The Agreement
outlines the terms for end-user license use in an annex, and the Company
will provide technical support to the Distributor’s clients as specified
in another annex to the Agreement. The Partner will promote the
Company’s Software to its clients globally through Bittium’s sales
channels. This Agreement is open-ended with a 12-month notice period for
termination and includes standard market provisions typical for such
contracts.
Pricing for the
software access will be based on the rates valid on the date the Partner
places an order, and revenue sharing will be the model for financial
settlement between the parties. This means earnings will be tied to the
revenues the Partner generates from ECG studies and analyses using the
Medicalgorithmics software. Service prices may be adjusted annually,
based on general price changes announced by the Company, with a cap on
increases set at 5% or the annual inflation rate in Poland, as reported
by the Central Statistical Office, whichever is higher.
Given the global
reach of this Agreement, covering many countries across all continents
where Bittium operates, the Company believes this partnership holds
significant potential. While it’s challenging to predict minimum
revenues due to the variability in device usage and service pricing
across markets, the Company sees the Partner potentially becoming one of
its largest clients in the coming years.
This partnership
builds on a previous memorandum of understanding that assessed the
potential for long-term collaboration in commercializing the Company’s
cloud ECG diagnostics solutions. The implementation of this Agreement,
following just three months after the memorandum, highlights the
Company’s ability to execute strategic initiatives, offering significant
potential benefits for both the Partner and its clients through the use
of the Company’s software.
Bittium
Corporation, with over 35 years in advanced radio communication
technologies, specializes in telecommunications and connectivity
solutions. In addition to medical technology products and services for
cardiology and neurophysiology, Bittium serves a global customer base
across all continents. With revenues of 75.2 million euros in 2023, more
information about Bittium Corporation can be found at:
https://www.bittium.com.
More on: https://biznes.pap.pl/espi/pl/reports/view/2,552798