CytoSorbents and Fresenius Medical Care (FMC) have agreed to broaden the terms of their existing partnership and to add an expansive co-marketing agreement for CytoSorb in countries where the therapy is available today.
Increased commitment with 3-year renewal and guaranteed minimum orders of CytoSorb – Under the terms of the revised 3-year agreement, CytoSorbents extends FMC's exclusive distributorship of CytoSorb for critical care applications in France, Poland, Sweden, Denmark, Finland, and Norway through 2019.
Within these countries, FMC will develop and promote an integrated CytoSorb CRRT kit consisting of CytoSorb and FMC's CytoSorb-compatible blood tubing set. As part of the deal, FMC agrees to make guaranteed minimum quarterly orders and payments, evaluable every one and a half years.
Signed Co-marketing agreement for all existing CytoSorb markets – Under the terms of a new comprehensive co-marketing agreement, CytoSorbents and FMC will jointly market CytoSorb and FMC's CytoSorb-compatible blood tubing sets to FMC's critical care customer base in all countries where CytoSorb is being actively commercialized, where feasible. CytoSorbents and its existing distributors will continue to market, take, sell, and fulfill all CytoSorb orders.
FMC and its affiliates will identify and open new CytoSorb sales opportunities, make customer introductions with CytoSorbents and its assigned distributors, and take and fulfill orders for FMC's CytoSorb-compatible blood tubing sets. Both groups will jointly develop co-branded international marketing materials to support this program.
FMC will also provide a written endorsement of CytoSorb for use with FMC's multiFiltrate and multiFiltratePRO acute care dialysis machines that can be used by CytoSorbents and its distribution partners to promote CytoSorb worldwide. It is expected that the written endorsement, joint marketing materials, and co-marketing program will commence starting in the second half of 2017.
"CytoSorb is an integral part of FMC's acute care growth strategy and we are delighted to renew and enhance our commitment to CytoSorbents and this important therapy," stated Mr. Christian Schlaeper, Vice President of Therapy Marketing at Fresenius Medical Care.
"With our significant sales and marketing capabilities throughout the world, we plan to accelerate awareness, adoption, and usage of CytoSorb. This is a win-win scenario, giving our doctors access to an important therapy to help save the lives of their critically-ill patients, while increasing the utilization of our large international installed base of multiFiltrate and multiFitratePRO machines, and driving usage of our own disposables.
We have enjoyed an excellent relationship with CytoSorbents to date, and look forward to this next chapter of our partnership."
Mr. Chris Cramer, Vice President of Business Development for CytoSorbents stated, "This revised multi-year agreement with FMC, the global leader in dialysis, brings our partnership to the world stage and is expected to result in many synergies on both sides.
“In particular, the support of CytoSorb by FMC's world-class sales and marketing teams will significantly augment the coverage of our existing direct sales and distributor efforts in many of the current 42 counties where CytoSorb is being commercialized today. In addition, we will have the ability to bring this program and its benefits to new CytoSorb territories as they are added in the future.
“The anticipated access to many new FMC physician relationships under this agreement is predicted to spark strong interest and excitement in the therapy, helping to power future sales growth of both CytoSorb and FMC's multiFiltrate and multiFiltratePRO platforms. This agreement is a major milestone in the evolution of our partnership."
Financial terms of this agreement have not been disclosed.