Custom Software will Target the Growing Mobile Cardiac Telemetry (MCT) ECG Monitoring and Consumer Use Markets
TORONTO, ONTARIO / ACCESSWIRE / September 23, 2014 / CardioComm Solutions, Inc. (TSX VENTURE:EKG) ("CardioComm Solutions" or the "Company") confirmed today that they have executed a series of agreements involving a custom software development and royalty license with the newly formed and Toronto-based iMedical Innovations, Inc. ("IMED").
On September 15, 2014, the two organizations completed three agreements as follows: a Software Development Agreement; a Royalty Agreement; and a Software Escrow Agreement. Under the agreements, CardioComm Solutions will receive non-recurrent engineering fees associated with developing a custom ECG management software solution for exclusive use by IMED for their Device's entry into the ECG monitoring services market. Following the launch of the IMED business, CardioComm Solutions will receive an ECG royalty payment paid on a per-patient monitored basis.
In March 2013, CardioComm Solutions first announced a joint venture intent with Sensor Mobility to finance the CardioComm Solutions' subsidiary iMedical for development of a dry electrode, wearable ECG monitor that would utilize GSM technologies (the "Device") to send ECGs to medical monitoring centers. Over the ensuing 18 months, the organizations worked to finalize the IMED investment terms. As a result, on July 8, 2014, CardioComm Solutions entered into a memorandum of understanding ("MOU") for the staged transfer of the iMedical name (Canadian and US registrations) from CardioComm Solutions to IMED, as well as the acquisition of assets of Sensor Mobility by IMED. The MOU further outlined the intent of IMED and CardioComm Solutions to execute a separate series of agreements by the end of September 2014.
"IMED is targeting an entry into the USA-based MCT services market, an area with which CardioComm Solutions has extensive knowledge and experience. We will leverage our GEMS(TM), GlobalCardio(TM) and GUAVA software technology solutions to develop a unique product that will specifically meet the requirements of the IMED device(s) while allowing adherence to USA MCT billing code rules," stated Etienne Grima, Chief Executive Officer for CardioComm Solutions.
IMED will be responsible for the design, FDA submission, manufacturing and marketing of the wearable ECG monitors as well as the marketing of ECG monitoring services in North America. CardioComm Solutions will work with IMED on the FDA 510K submission for clearance of the custom software. The Company acknowledges that the agreements will be binding contingent on IMED completing their due diligence reviews, which must be completed no later than October 17, 2014.
"The global cardiac monitoring and cardiac rhythm management market was estimated to be worth $18.4 billion in 2012, according to a January 2013 report by MarketsandMarkets titled 'Cardiac Monitoring & Cardiac Rhythm Management (CRM) Market [ECG, Implantable Loop Recorder, Holter, Implantable Cardioverter Defibrillator (ICD), Automated External Defibrillator (AED), Pacemaker, CRT-D, CRT- P] - Global Forecasts to 2017'. This current custom software development opportunity is the second large-scale MCT engineering project for us, the last being completed for Philips Healthcare. The cardiac monitoring market will continue to grow at a significant pace in the next five years due to the increasing incidence of cardiovascular diseases, an aging population, rising cost of cardiac disease treatment and government regulations in favor of cardiac monitoring," noted Simi Grosman, member of the Board of Directors for CardioComm Solutions. "It is a space that we understand well and through our partnership with IMED, it is our intention to continue to play and important role in development of this market through the introduction of novel ECG monitoring devices and innovative software solutions that adhere to the requirements of all regulatory bodies."
The Company will provide further details on the funding to be received upon completion of due diligence by IMED.
To learn more about the CardioComm Solutions' products please see the Company's website www.cardiocommsolutions.com.
About CardioComm Solutions
CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms (ECGs) for diagnosis and management of cardiac patients. Products are sold worldwide through a combination of an external distribution network and a North American-based sales team. The Company has earned the ISO 13485 certification, is HPB approved, HIPAA compliant, and has received FDA market clearance for its software devices. CardioComm Solutions, Inc. is headquartered in Toronto, Canada, with offices in Victoria, B.C.
For more information please contact [email protected].
Forward-looking statements
This release may contain certain forward-looking statements and forward looking information with respect to the financial condition, results of operations and business of CardioComm Solutions and certain of the plans and objectives of CardioComm Solutions with respect to these items. Such statements and information reflect management's current beliefs and are based on information currently available to management. By their nature, forward-looking statements and forward-looking information involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements and forward-looking information.
In evaluating these statements, readers should: specifically consider risks discussed under the heading "Risk Factors" in the Company's 2013 Annual Information Form, available at www.sedar.com; not to place undue reliance on forward-looking statements and forward-looking information; be aware the Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this Annual Information Form other than as required by applicable laws (including without limitation Section 5.8(2) of National Instrument 51-102 (Continuous Disclosure Obligations).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: CardioComm Solutions, Inc.