TEL AVIV, Israel, October 22, 2012 /PRNewswire/ --
InspireMD, Inc. ("InspireMD" or the "Company") (OTC: NSPR) announced updates on current commercial activities and unreviewed sales results for the period ended Sept. 30, 2012, the first quarter of its 2013 fiscal year.
As previously announced, the Company changed its fiscal year to cover the period of July 1 to June 30.
The Company said it renegotiated its product design licensing agreement with Svelte Medical Systems, Inc. of New Providence, NJ, to lower the royalty on MGuard Prime stent sales from 7% outside the U.S. and a high of 10% after FDA approval to 2.9 % on worldwide sales, in return for issuing Svelte $1,763,000 of InspireMD common stock. The Company said it expects the lower royalty rate to improve gross margins and earnings on future MGuard Embolic Protection Stent (EPS) sales.During the past several months, the Company has been realigning its distributor relationships in advance of the Transcatheter Cardiovascular Therapeutics (TCT) meeting in Miami, FL, where Gregg W. Stone, MD, the study's chairman, will present results of the Company's 432-patient MASTER trial of its MGuard EPS this Wednesday, Oct. 24. The MASTER trial is the first major randomized study comparing the MGuard EPS to standard of care in the emergency treatment of patients undergoing potentially fatal heart attacks. The Company is in the process of appointing new distributors in certain territories, and believes that new incentives and broader responsibilities have strengthened arrangements with its best and most experienced country and regional partners. Third party distributors are also being replaced by direct sales channels in key European countries where end user average selling prices and the lack of strong distributors are limiting factors.