Israeli biomedical company IceCure Medical, the developer of technology that freezes cancerous tumors, announced on Thursday that it has expanded its strategic partnership with Japanese medical device company Terumo Corporation.
The new agreement, which has been expanded to $20 million, will grant Terumo exclusive rights to distribute IceCure’s products in Thailand for a sum of $7.2 million over a period of six years with an option to extend the agreement for another six years. Thailand, which currently has a population of 70 million, is the third country where Terumo and IceCure collaborate and they are exploring collaborations in other countries.
The expanded partnership reflects the ongoing success of the initial agreement, which was signed in September 2019, and included distribution rights in Japan and Singapore, a statement from IceCure said. The deal is expected to be finalized by the end of the year.
Founded in 2006, IceCure developed a pair of cryoablation systems for treating malignant and benign tumors. The treatments involve streaming liquid nitrogen in a closed circuit and then freezing the tumor with a unique needle developed by IceCure. According to the company, the healthy tissue remains untouched.
IceCure touts its procedures as non-invasive, safe, and a viable alternative to surgery. The procedure can be performed in a clinic in about an hour, without the need for general anesthesia or hospitalization.
The company says its progress is driven by the increasing global accelerating trend for minimally invasive treatments, that remove the need for expensive operating rooms and medical staff during surgical procedures. The solution can also help institutions free-up overloaded operating rooms around the world, as well as further prevent and reduce possible infections in medical procedures. These issues are of critical importance during the COVID-19 pandemic.
IceCure’s proprietary, flagship ProSense liquid-nitrogen based system, has FDA approval and a CE mark, according to IceCure CEO Eyal Shamir.
Sign up for our free weekly newsletterSubscribe
IceCure recently reported that it tripled its revenue in the first half of 2020 compared to the same period last year.
The deal will be expanded Under the terms of a Letter of Intent (LOI), in exchange for granting exclusive distribution rights and knowledge-sharing for its ProSense cryoblation system and its consumables for the initial six-year period of years, the agreement includes a payment of $450,000 that will be paid by Terumo in three installments over two years. The first payment of $150,000, along with Terumo’s first purchase order (PO) of approximately $329,000, will be due upon execution of the final agreement.
“Thailand, along with Japan and Singapore, are key geographies for IceCure in Southeast Asia, and with approximately 170,000 new cases of cancer every year, we believe patients will greatly benefit from IceCure’s ProSense cryoablation system,” said Shamir.
“We are delighted to expand and strengthen our collaboration with IceCure. As we continue to address key unmet medical needs, IceCures innovative ProSense cryoablation system provides a vital non-surgical alternative for cancer patients seeking treatment in Thailand. We look forward to working together and exploring future opportunities”, said Probir Das, chair and managing director of Terumo Asia Holdings, Regional Leader of Asia, Pacific & India and Executive Officer, Terumo Corporation.
“This achievement is a continuation of our business strategy to collaborate with strategic distributors in order to accelerate commercialization of technology to offer healthcare facilities with alternative oncology solutions. Moreover, our ProSenseminimally invasive system eliminates the need to have the patient in the operating room, a significant advantage in today’s healthcare environment as medical facilities are managing the COVID-19 pandemic to reduce risks of infectious pathogens and freeing up medical resources,” said Shamir.