Myomo Inc, Cambridge, Mass, has signed a definitive agreement with Beijing Ryzur Medical Investment Co Ltd to form a joint venture (JV) to manufacture and sell the company’s current and future products in greater China, including Hong Kong, Macau and Taiwan, it announces in a media release.
Beijing-based device manufacturer Ryzur Medical and Shanghai-based private fund Chinaleaf Capital Management Co Ltd will hold majority ownership in the JV, to be named Jiangxi Myomo Medical Assistive Appliance Co Ltd. Myomo will own a minimum 19.9% stake in the JV.
Ryzur Medical and its partners have committed to invest a minimum of $8 million and up to $20 million in the JV over 5 years, and when established, the JV intends to enter into a 10-year agreement to license Myomo’s intellectual property and purchase MyoPro Control System units, a core component containing the product’s firmware and software, from the company. Under the License Agreement, Myomo would be entitled to receive an upfront license fee of $2.5 million, and the JV would enter into an escalating purchase commitment for a minimum of $10.75 million in MyoPro Control System Units during the next 10 years, subject to receipt of regulatory approvals necessary to permit sales of the product in the greater China territory, the release continues.
“With this joint venture we can begin addressing the large unmet need in China, which cannot be done effectively without a local partner. Myomo is now positioned to provide our devices in the world’s three largest markets, namely the US, Europe and China.”
— Paul R. Gudonis, Chairman and CEO of Myomo
“Myomo offers a unique and proven technology that is much-needed in China, and fits very well with our existing offering of medical products and services. Ryzur intends to use its sales and distribution channels to help the joint venture to bring the MyoPro product line to patients and hospitals across China. We look forward to offering the benefits of Myomo’s products to Chinese patients as quickly as possible.”
— David Ren, General Manager of Ryzur Medical
[Source(s): Myomo Inc, Business Wire]