OEM distribution agreement with CareFusion

RNS Number : 5290F

Surgical Innovations Group PLC

18 June 2012

 



Surgical Innovations Group plc

("SI" or the "Company")

US OEM distribution agreement with CareFusion for PretzelFlex®

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery ('MIS'), announces that it has signed an eight-year exclusive distribution agreement with CareFusion (NYSE: CFN), a leading, global medical device company, for its new advanced PretzelFlex® laparoscopic retractor in the US.

Under the distribution agreement, CareFusion has acquired exclusive US rights to PretzelFlex® for eight years. This replaces the existing licensing agreement for the Diamond-Flex® which is due to end in 2012 and is based on minimum contracted volumes.

The patented PretzelFlex® has been developed by SI for the effective retraction or repositioning of large organs, such as the liver, to provide proper access and visualisation during complex minimally invasive surgery (MIS). A common use of the device is in the retraction of the liver during a gastric bypass. For this type of operation the liver must be moved (retracted) in order to obtain access to the upper stomach. The Pretzel-Flex® makes it much easier for doctors to retract large or swollen livers that are common in obese individuals.

The device will be manufactured by Surgical Innovations for CareFusion and it will be marketed in the U.S. under the CareFusion brand. SI retains the right to manufacture and distribute the device, under the SI brand in all other markets, with an SI branded PretzelFlex® already successfully launched in Europe.

The PretzelFlex® generated significant interest from US surgeons at the recent SAGES congress (Society of American Gastrointestinal and Endoscopic Surgeons) in San Diego, and having received 510(k) clearance from the US Food and Drug Administration ('FDA') in March 2012 this deal ensures continuous revenue streams in an already established market.

Graham Bowland, Chief Executive Officer of SI, said: "Confirmation of this latest agreement with CareFusion affirms a long standing and successful partnership and gives us increased exposure to a growing US market for innovative MIS products."

Enquiries:

Surgical Innovations Group plc	www.sigrouplplc.com
Doug Liversidge, Non-Executive Chairman	Tel: [phone]
Graham Bowland, Chief Executive Officer	[e-mail]
Seymour Pierce Limited	Tel: [phone]
Freddy Crossley / Sarah Jacobs (Corporate Finance)
David Banks / Jacqui Briscoe (Corporate Broking)
Walbrook PR Ltd	Tel: [phone]
Paul McManus	Mob: [phone] or [e-mail]
Fiona Henson	Mob: [phone] or [e-mail]

About Surgical Innovations Group plc

Surgical Innovations Group plc specialises in the design and manufacture of creative solutions for minimally invasive surgery (MIS) and industrial markets. 

As well as manufacturing single-use and reusable instruments for the laparoscopic market, the Group has pioneered its flagship Resposable® instrumentation combining both single use and reusable components, ensuring ongoing revenue streams and delivering the optimum procedure performance to cost ratio.

Over 120 people are employed at the Group's 32,000 square feet facility in Leeds, with in-house design, plastic injection moulding and manufacturing equipment, producing products to the highest quality standards.

The Group's patented products are sold through three main channels:

SI brand	Through an established network of distribution partners, Surgical Innovations branded products are sold in major medical markets including North America, Britain, South East Asia, Australasia and the Indian subcontinent.
OEM and IP	The Group supplies large medical device companies on an OEM basis, generating both sales and IP royalty fees.  Clients include Teleflex Medical, Olympus and CareFusion.
Industrial	SI's patented segment technology has been applied to the industrial market enabling customers to undertake inspection and maintenance of large-scale equipment, in situ with minimum disassembly and downtime.

For more information, see www.surginno.com

 

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