Zynex Signs Distribution Agreement for China Market
December 24, 2013 - Lone Tree, CO
Zynex, Inc. (OTCQB: ZYXI), a provider and developer of non-invasive medical devices for electrotherapy, stroke rehabilitation and neurological diagnosis, announced today that it signed a five-year exclusive distribution agreement with DIH Medical Technologies Co Ltd for the distribution of its NeuroMove device in China commencing December 17, 2013. Although the agreement can be cancelled upon 60 days' notice by DIH, the minimum purchase requirements over the agreements expected five-year term would equal sales of $4.6 million. The first year's minimum commitment is $750,000.
DIH Medical Technologies is a 20-year old, well established distributor of rehabilitation equipment in China and has a strong presence in stroke rehabilitation. DIH is headquartered in Beijing, China with approximately 300 employees, four regional offices throughout China, 100 direct sales representatives and 88 local distributors.
The NeuroMove, a proprietary stroke rehabilitation device developed by Zynex, enables stroke patients to regain mobility, even several years post-stroke, through neuroplasticity, a method that facilitates relearning in parts of the brain to control and strengthen muscle function. Zynex recently received approval from the Chinese SFDA for its NeuroMove device.
Thomas Sandgaard, Zynex President and CEO stated, "We are very excited to be working with DIH for the Chinese market due to their strong presence in the stroke rehab segment and their proven record of fast growth and market development."
More information about DIH Medical Technologies Co. Ltd: www.dihmed.com
More information about the NeuroMove: www.neuromove.com
Zynex (founded in 1996), operates under five primary business segments; Zynex Medical, Zynex NeuroDiagnostics, Zynex Monitoring Solutions, Zynex International and Zynex Billing and Consulting. Zynex Medical engineers, manufactures, markets and sells its own design of electrotherapy medical devices for electrotherapy, used for pain management and rehabilitation. Zynex Medical's product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex NeuroDiagnostics, sells the company's proprietary NeuroMove device designed to help stroke and spinal cord injury patients and is currently expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, was established to develop and market medical devices for non-invasive cardiac monitoring. Zynex International is dedicated to supporting sales and marketing of Zynex products worldwide through a network of medical distributors. Zynex Billing and Consulting division provides medical billing and consulting service for offices and hospitals.
For additional information, please visit: www.ir-site.com/zynex.
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital in order to grow our business, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2012.