Brainsway has entered into an exclusive agreement for the distribution of its Deep TMS (transcranial magnetic stimulation) device with a Chilean company specially formed for the purpose.
The Chile-based distribution company has been granted exclusive rights to market and promote sales of the Deep TMS device in the country for ten years. The retention of these rights (except during the first three years) is subject to minimum targets for renting out Deep TMS devices each year. The Deep TMS is being marketed 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.
Brainsway will provide the distribution company with the devices it orders, whilst the distribution company will be responsible for renting out these devices and installing them at the clients' facilities. Furthermore, the distribution company has undertaken to set up specialised Deep TMS treatment centres. Clients will pay the distribution company a fixed fee for each device, or alternatively, a 'pay-per-use' fee based on the number of treatments administered using each device. The cost to clients will be determined by the distribution company alone. The Deep TMS devices will remain the property of Brainsway.
The distribution company will pay Brainsway a fixed monthly fee for each Deep TMS device provided. Brainsway has reserved the right to switch to a pay-per-use charging mechanism, whereby it would be paid for each treatment administered using the Deep TMS devices. The distribution company has also undertaken to obtain all the regulatory approvals necessary for the marketing of the device in Chile for its various indications no later than 30th April 2012. The distribution company has further undertaken to obtain commitments from major healthcare service providers and insurance companies in Chile to provide coverage for treatments using the Deep TMS device.