Vasomedical's subsidiary, Vaso Diagnostics or Vaso Healthcare, has signed a sales representative agreement with GE Healthcare, the healthcare business unit of GE, for the sale of select GE Healthcare diagnostic imaging products.
Under the agreement, Vaso Healthcare has been appointed the exclusive representative for these products to specific market segments in the 48 contiguous states of the US and District of Columbia.
The agreement is for an initial term of three years commencing July 1, 2010, subject to extension and also subject to earlier termination under certain circumstances. Vaso has received financial commitments for up to $5m for the purpose of funding the project.
Vaso Healthcare said that it has taken the necessary steps to qualify for GE Healthcare’s high requirements and to meet the challenges of highly technical and rapidly changing market.
Specifically, Vaso Healthcare has formed a new sales organization of approximately 60 experienced sales professionals and support personnel specializing in high-tech medical equipment sales.
Abraham Cohen, chairman of the board of Vasomedical, said: “This representation agreement is an example of Vasomedical’s strategy to expand its operations into new areas of potential growth in healthcare. Based upon the future needs of the worldwide medical marketplace and the growth potential for revenue and shareholder value.
“Vasomedical will continue to explore new and exciting opportunities designed to improve the delivery of healthcare and significantly contribute to the quality of life.”