Brainsway TMS device to be distributed in Chile

Brainsway (TASE:BRIN) has entered into an exclusive agreement for the distribution of its Deep TMS devices with a Chilean company specially formed for the purpose and owned by a business group in the pharmaceutical industry.

Under the 10-year accord, the distribution rights are subject to the Chilean company renting out a specified minimum number of Deep TMS devices each year.

“Expanding the global distribution network for Deep TMS is a major growth driver for Brainsway,” CEO Uzi Sofer said in a statement. “Accordingly, the signing of this agreement is a key milestone achievement for our company.”

The distribution company will market and distribute the Deep TMS device in Chile for the treatment of major depression, schizophrenia, bipolar depression, Parkinson’s disease, post-traumatic stress disorder, and any other indication approved by the Chilean authorities.

It also will set up specialized Deep TMS treatment centers utilizing the Brainsway device. Clients will pay the distribution company a fixed fee for each device, or a “pay-per-use” fee based on the number of treatments administered with each device, which will be determined by the distribution company alone.

Brainsway will receive a fixed monthly fee for each Deep TMS device provided. Brainsway also has reserved the right to switch to a “pay-per-use” charging mechanism for each treatment administered with a Deep TMS devices, “but in any event, no less than a minimum agreed-upon fee,” it said.

The distribution company also is responsible for obtaining regulatory approvals in Chile for its various indications by April 30, 2012, and coverage commitments from major healthcare service providers and insurance.