Guided Therapeutics (OTC:GTHP) said that it inked an exclusive licensing agreement with Shandong Yaohua Medical Instrument Corp., to manufacture its LuViva advanced cervical scan system and related disposables. The deal also gives SMI exclusive distribution rights in China, Macau, Hong Kong and Taiwan.
SMI is slated to pay a $1.0 million licensing fee in 5 installments until Oct. 2017. The company will also underwrite the cost of regulatory approval with the Chinese Food and Drug Administration, Guided Therapeutics said. Once SMI wins CFDA approval, the company will pay $1.90 royalty on each disposable sold by directly purchasing a controlled programmable chip that is necessary to operate the unit.