Newtown, PA – November 21, 2014 – Helius Medical Technologies (CSE: HSM) (“HMT”, “Helius” or the “Company”) a medical technology company focused on the treatment of neurological symptoms caused by disease or trauma, has signed a distribution agreement with Altair LLC, a Russian medical distribution company. Helius is working on the development of the PoNS™, an investigational medical device that induces neuromodulation by stimulating the cranial nerves found in the tongue. It is initially being studied for the treatment of balance disorder symptoms caused by Traumatic Brain Injury (“TBI”) and Multiple Sclerosis. Neurologist Evgeny Bugorskiy, owner of Altair LLC, has been working alongside PoNS™ inventor, Yuri Danilov, for the past ten years and has been evaluating the device for the treatment of a number of neurological indications including cerebral palsy, stroke and TBI.
The distribution agreement provides that Altair LLC shall be responsible for taking all necessary steps and incurring all incidental costs required to register the PoNS™ device for patient use within the territories, including performing any clinical studies and any other actions required to obtain government and regulatory approvals in order to distribute and sell the PoNS™ device in such territories. The territories include the following countries: Russia, Armenia, Georgia, Kyrgyzstan, Moldova, Azerbaijan, Belarus, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan, Estonia, Lithuania, and Latvia.
Upon Altair LLC receiving the necessary government and regulatory approvals, it shall purchase the PoNS™ device from Neurohabilitation Corporation (“NHC”), a wholly-owned subsidiary of Helius, according to a volume-adjusted price schedule. A mid-single digit royalty will also be payable and applied to net product sales. To maintain the agreement, certain minimum annual order thresholds, based on approved treatment indications, must be achieved.
“Dr. Bugorskiy’s Moscow clinic has been instrumental in pioneering PoNS™ clinical research for numerous neurological conditions. We are excited that Dr. Bugorskiy’s commitment and conviction as to the merits of the PoNS™ device have been formalized with this distribution agreement,” adds Helius’ CEO, Philippe Deschamps.
About Helius Medical Technologies (HMT)
Helius Medical Technologies is a medical technology holding company focused on neurological wellness. HMT’s mission is to develop, license and acquire non-invasive treatments designed to help patients affected by neurological symptoms caused by disease or trauma. HMT intends to file for U.S. Food and Drug Administration clearance for the PoNS™ device. For more information, please visit www.heliusmedical.com.
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