I-Flow Corporation (I-Flow), a US-based medical devices company, said it has entered into a binding letter of intent (LOI) for an international distribution agreement with B. Braun Melsungen AG (B. Braun Melsungen), a Germany-based medical devices company, covering I-Flow's ON-Q PainBuster Post-Operative Pain Relief System and ON-Q C-bloc Continuous Nerve Block System. The definitive distribution agreement is expected to be in place by June 1, 2009.
B. Braun’s distribution territory will be world-wide, excluding the US, Canada, Mexico, Japan, the Middle East, Australia, New Zealand, Greece, South Africa and China.
Both parties have agreed that the initial term of the distribution agreement will be until December 31, 2013, unless earlier terminated pursuant to normal and customary provisions in the distribution agreement. B. Braun will not distribute competing products during the term.
“I-Flow believes that this key partnership with B. Braun will significantly increase the Company’s international presence and revenue base,” said Donald M. Earhart, chairman, president and chief executive officer of I-Flow. “We look forward to working with B. Braun in creating a mutually rewarding long-term relationship focused on the growth of ON-Q in the world’s markets.”