MedAmicus Signs Exclusive Distribution Agreement with NICOLAI

Strategic Insights -

MedAmicus, Inc. (Nasdaq: MEDM) has announced a significant partnership with NICOLAI, a German medical products distribution company, granting NICOLAI exclusive distribution rights in Germany to MedAmicus' innovative LUMAX Fiber Optic Stand-alone Cystometry System. The agreement, which commenced on January 1, 1995, will run for five years, during which NICOLAI must purchase over $3,000,000 worth of MedAmicus' monitors, with the exact amount of catheters to be determined at a later date. This partnership marks a significant expansion into the German market, with NICOLAI boasting 13 sales representatives covering the country. NICOLAI has been testing the market for the product since December 1994, with physicians responding favorably to the innovative technology.

Key Takeaways:

  • MedAmicus has signed an exclusive distribution agreement with NICOLAI for the LUMAX Fiber Optic Stand-alone Cystometry System in Germany.
  • The five-year agreement began on January 1, 1995, and requires NICOLAI to purchase over $3,000,000 of MedAmicus' monitors.
  • NICOLAI will maintain exclusive distribution rights in Germany for the duration of the agreement.
  • The agreement is contingent on NICOLAI's purchase of catheters, the amount of which is yet to be determined.
  • James Hartman, MedAmicus President, stated that the company agreed to develop experience with catheter usage before setting a commitment volume.
  • NICOLAI is a majority-owned company by Rudiger Dahle, a German investor, who also owns 14.3% of MedAmicus' Common Stock and sits on the MedAmicus Board of Directors.

Statistics:

  • $3,000,000: The amount NICOLAI must purchase in MedAmicus' monitors over the five-year term of the agreement.
  • December 1994: The month NICOLAI began testing the market for MedAmicus' product.
  • 13: The number of NICOLAI's sales representatives covering Germany.
  • 5: The number of years the exclusive distribution agreement will be in effect.
  • 14.3%: The percentage of MedAmicus' Common Stock owned by Rudiger Dahle.

Sources:

  • PRNewswire, February 27 / 1995 /PRNewswire/- Complaint.
  • MedAmicus, Inc., a Plymouth, Minn. based medical products company.