STOCKHOLM, April 12, 2019 /PRNewswire/ -- Ortoma has signed an exclusivity agreement under a memorandum of understanding (MoU) with a European company that has Chinese ownership interests. With the MoU, Ortoma undertakes not to initiate discussions or negotiations with other companies with headquarters in Asia until June 30, 2019. The agreement gives the counterparty the opportunity to continue evaluating Ortoma's technology and negotiating commercial terms with under a limited exclusivity.
At the beginning of the year, the companies evaluated the opportunities for collaboration to take the Ortoma Treatment Solution (OTS) to the market, not only in Asia but also in other parts of the world. The initial evaluation has been positive and the companies are now initiating in-depth evaluation of technology and commercial discussions.
Linus Byström, CEO, comments: "The initial discussions not only gave the potential partner the opportunity to evaluate OTS, but also gave us an understanding of the their vision for the future. We are impressed by their insights in the orthopedic market and their vision for continued development. The company has a strong focus on innovation and a unique solution for customized implants. To accurately position these implants with OTS would further strengthen them and us in the market. Our visions for the future correspond very well. They are constantly looking for innovations that are at the forefront and see opportunities to take OTS to a unique position for hip joint surgery and then develop it further into other areas."
Under MoU, Ortoma is free to continue discussions with companies that have headquarters outside Asia.
The Chinese market for orthopedic implants is young, and only about 20 hip implant surgeries per 100,000 inhabitants are carried out per year. The corresponding figure for Japan is about 60, and for Sweden about 350. In China, however, around 700 000 surgeries with hip and knee implants are already performed per year, and market growth is about 20%.
Ortoma Treatment Solution™ - careful planning and precise surgery.
Ortomas CEO Linus Byström or Chairman of the board Gunnar Németh
This information is such information as Ortoma AB (publ) is obliged to disclose in accordance with the EU Market Abuse Regulation. The information was provided through contact with the above contact person for publication on April 12th, 2019.
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