D Medical Industries has signed a definite agreement with UPG (Suzhou) EPZ Co Ltd (UPG) for the manufacturing and supply of consumable components of its Adi durable insulin pump.
Initially the term of the agreement is 3 years with UPG having the option to renew the agreement for two more years following the expiration of the term of the agreement.
As per the terms of the agreement, UPG is to supply the products at agreed prices to D Medical.
D Medical has agreed to purchase certain minimum quantities of the products.
D Medical chief operating officer Hezkiah Tsoory said that they expect that once they increase sales and manufacturing volume, they will achieve economies of scale and will be able to further reduce cost of sales and more fully capitalise on the cost-effectiveness of their spring-based design.
D Medical CEO Efri Argaman said that after raising additional capital in the market earlier this month, they are now proceeding to mass production with the help of UPG.
“We expect that the funds raised will help us to successfully execute our business plan by expanding manufacturing quantities, reducing production costs and eventually, increasing sales volumes,” Argaman said.