Eckert & Ziegler BEBIG S.A. Executes Framework Agreement With Leading Russian Radiation Therapy Provider
Seneffe, Belgium, December 31, 2012 - Eckert & Ziegler BEBIG S.A. (Euronext:
EZBG; Reuters: EZBG.BR; Bloomberg: EZBG:BB; hereafter "BEBIG") announces the
signing of a framework agreement for the local production of brachytherapy
devices with ZAO MSM-Medimpex (hereafter "MSM"), a leading Russian distributor
of radiation therapy and nuclear medicine equipment. The contract covers the
sale of production assets from BEBIG to MSM, a license for the use of BEBIG
know-how, and support for the development of local afterloader modules. The
agreement will enable MSM to manufacture a line of Russian brachytherapy devices
for the precise treatment of cancer.
BEBIG in turn will benefit from production equipment and license revenues, and a
long term delivery contract for specialized components. Part of the license
revenues will already be booked in 2012, increasing BEBIG's projected 2012 EBIT
to a level of about 4 mm EUR.
"The agreement will bring MSM and BEBIG closer together and thereby strengthen
BEBIG's position in the Russian brachytherapy market", explains Dr. Edgar
Löffler, Managing Director at Eckert & Ziegler BEBIG. "It allows BEBIG to
participate more prominently in future Russian government cancer care
investments, which are expected to increase significantly under the new State
Oncology Program. Over the last years, BEBIG has already sold over 70 temporary
brachytherapy systems. There is still an enormous potential for the use of such
equipment in Russia. Together with MSM we are determined to exploit it. The
revenues generated by this contract will reach well over 30 million EUR for both
parties over the following three years."
"MSM is proud to announce this result of our long-term fruitful collaboration
with Eckert & Ziegler BEBIG in the field of temporary brachytherapy," says
Andrey Popov, Director General of MSM. "We have built a strong market presence
with the BEBIG cancer therapy equipment over the last years due to the unique
temporary brachytherapy devices with miniaturized Co-60 sources. Also, this
contract allows us to participate on the Federal Target Program. The local
production will give us a significant advantage over our competitors in upcoming
government tenders."
About MSM-Medimpex
MSM-Medimpex was established in 1994 as a medical device company, specializing
in the distribution of radiation therapy and nuclear medicine equipment and
software. Today, MSM is one of the leading oncology solution distributors in the
Russian Federation and the Commonwealth of Independent States (among others,
Belarus, Ukraine, Armenia, Azerbaijan, Kazakhstan, Turkmenistan, and
Uzbekistan). With a team of highly qualified professionals, engineers and
medical physicists on board, MSM-Medimpex provides clinics with turnkey projects
including installation, training and full after-sales service support. Website:
www.msm-medimpex.ru
About Eckert & Ziegler BEBIG
Eckert & Ziegler BEBIGÂ (Euronext: EZBG; Reuters: EZBG.BR; Bloomberg: EZBG: BB)
is a leading provider of cancer treatment devices based on radiation sources.
Among others, it develops and manufactures permanent implants for the treatment
of prostate cancer and temporary brachytherapy devices for a number of other
tumors. The group employs about 150 people and has subsidiaries or offices in
Germany, France, the UK, Spain, Italy, Brazil, and India. Its headquarters are
located in Seneffe, Belgium. The company has been listed on the Euronext stock
exchange since April 1997. For further information see www.bebig.eu.
Contact:
Eckert & Ziegler
BEBIG S.A.
Investor Relations
Tel.: +32 64 520 808
Email: ir@bebig.eu
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Source: Eckert & Ziegler BEBIG via Thomson Reuters ONE
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