ASHKELON, Israel, Feb. 17, 2015 /PRNewswire/ -- Integrity Applications, Inc. (OTCQB: IGAP) (the "Company" or "Integrity"), developer of the GlucoTrack® model DF-F noninvasive blood glucose measurement device, has entered, through its wholly-owned subsidiary, Integrity Applications Ltd., into distribution agreements for the GlucoTrack model DF-F device with LifeCaring Technologies Limited (H.K.) and Guangzhou Guang Yuan Biological Pharmaceutical Co. Ltd. in Hong-Kong and in China, respectively. According to the International Diabetes Federation, as of 2013 a total of about 0.5 million people with diabetes, or 9.5 percent of the adult population, in Hong-Kong, and a total of about 98 million people with diabetes, or 9.5 percent of the adult population, in China have diabetes.
Based on the minimum purchase forecasts contained in the Hong-Kong distribution agreement, the Company anticipates that LifeCaring Technologies Limited (H.K.) will purchase in the first 12 months of sales GlucoTrack model DF-F products with an aggregate value of about $0.4 million. The Company has recently fulfilled its first wholesale order under this agreement. Sales in China are subject to regulations clearance from the China Food and Drug Administration ("CFDA"). Based on the minimum purchase forecasts contained in the Chinese distribution agreement, Integrity anticipates that Guangzhou Guang Yuan Biological Pharmaceutical Co. Ltd. will purchase in the first 12 months of sales GlucoTrack model DF-F products with an aggregate value of about $20.0 million. While the Company has initiated the clearance process with the CFDA, there is no guarantee that it will receive such approval on a timely basis or at all.
Avner Gal, President and CEO of Integrity Applications, said, "These distribution agreements reinforce that there is global need and demand for GlucoTrack model DF-F. With our recent extended CE Mark approval to six-month calibration validity, we believe that our device offers users an important advantage of monitoring themselves in a convenient, not painful way, which leads to better adherence in treating the disease. Integrity Applications is continuing to negotiate with potential distributors who can offer our new, noninvasive alternative for monitoring blood glucose to diabetes patients in further jurisdictions."
Dr. Chunli Liu, CEO of Guangzhou Guang Yuan Biological Pharmaceutical Co. Ltd. and LifeCaring Technologies Limited, said: "Nearly 100 million diabetes patients need to monitor their glucose daily. The GlucoTrack model DF-F gives Chinese diabetic patients an alternative way to check their glucose without pain at a reduced cost as compared to traditional, invasive glucose measurement devices. We are looking forward to bring the GlucoTrack model DF-F to diabetic patients in China and working with Integrity Applications."
About GlucoTrack
GlucoTrack features a small sensor that clips to the earlobe and measures the wearer's blood glucose level by taking measurements using three technologies. The measurements are analyzed using a proprietary algorithm and displayed on a small handheld device, the size of a mobile phone. The derived blood glucose measurement is also announced verbally, making it suitable for the elderly and vision-impaired diabetes patients. The Company has obtained a CE Mark approval for its GlucoTrack Model DF-F in Europe (June 2013) and final CE Mark approval in March 2014, and intends to seek Food and Drug Administration approval for GlucoTrack Model DF-F in the United States.
About Integrity Applications, Inc.
Integrity Applications, Inc. is a medical device company focused on the design, development and commercialization of non-invasive glucose monitoring devices for use by people with diabetes. Integrity Applications has developed the GlucoTrack model DF-F non-invasive glucose monitoring device, which is designed to help people with diabetes obtain blood glucose level measurements without the pain, inconvenience, incremental cost and difficulty or discomfort of conventional (invasive) spot finger stick devices. Integrity Applications operates primarily through its wholly-owned Israeli subsidiary, A.D. Integrity Applications, Ltd. For more information please visit www.integrity-app.com.
About Guangzhou Guang Yuan Biological Pharmaceutical Co. Ltd. and LifeCaring Technologies Limited (H.K)
Guangzhou Guang Yuan Biological Pharmaceutical Co. Ltd. ("Guangzhou") and LifeCaring Technologies Limited (H.K) (together, "LifeCaring") specialize in high-tech remote "Cloud" health management sector. LifeCaring main business areas are leading "Cloud" remote health monitoring technology and assist with the world's top medical systems and devices. LifeCaring provides consumers with professional and advanced remote "Cloud" health monitoring, health assessment, health interventions, health care, and health education.
LifeCaring provides management and services, and through the "Cloud" server intelligently analyzes and diagnoses collected data, data sharing, provides early warning, medication reminder, healthy eating and exercise management, as well as other management functions.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "anticipate," and "will," are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect Integrity Applications' actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect Integrity Applications' results include, but are not limited to, the ability of Integrity Applications to raise additional capital to finance its operations (whether through public or private equity offerings, debt financings, strategic collaborations or otherwise); the ability of Integrity Applications to successfully commercialize the GlucoTrack model DF-F; the ability of the GlucoTrack model DF-F to achieve acceptable pricing, adequate third party reimbursement or market acceptance; the ability of Integrity Applications to manage its growth and the expansion of its operations to include commercialization activities; risks relating to the use of third party manufacturers; risks relating to the development of Integrity Applications' sales, marketing and distribution capability, either on its own or through collaborations with marketing partners; the possibility that the distributors will not satisfy their minimum purchase commitments under their distribution agreements; risks relating to the receipt (and timing) of foreign regulatory approvals; and the additional risk factors described in Integrity Applications' filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2013.
Contact:
Eran Hertz, CFO Integrity Applications
+972 (8) 675-7878 ext. #3
eranh@integrity-app.com
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SOURCE Integrity Applications, Inc.