Mediwatch begins exodus from Genesis JV after dissolving agreement
WARWICKSHIRE-based medtech firm Mediwatch has dissolved a new joint venture agreement designed to strengthen the sale of its products in the UK.
The Rugby firm announced in January that it had agreed a three-year deal with Genesis Medical Ltd and the new company – Mediwatch Genesis Ltd – would aim to market more effectively and supply more efficiently all Mediwatch equipment into the National Health Service and private health sector in the UK.
However, in a statement to the London Stock Exchange, Mediwatch said: “After after lengthy negotiations with Genesis Medical Ltd regarding the joint venture, both parties could not agree on a number of commercial aspects and the joint venture has been dissolved.
“Mediwatch has therefore decided to reorganise its UK sales management and has utilised existing in-house personnel to extend coverage in the UK without incurring additional overhead costs. This will enable Mediwatch to prepare for the release of newly designed products and will give Mediwatch control of the UK market place.”
Under the terms of the JV, Mediwatch had agreed to manufacture and supply capital and disposable equipment, and Genesis would have provided sales and marketing expertise to penetrate the urology and gynaecology sectors.
Under the terms of the agreement Genesis, which specialises in the sale and marketing of medical devices and equipment to urologists in the UK, would have been due a commission on revenue generated. The rate of such commission would have varied depending on the type of product sold.
Dr Philip Stimpson, Mediwatch’s Chief Executive Officer speaking in January, said: “This is an excellent opportunity for Mediwatch to expand its sales in the UK without incurring additional costs and this joint working relationship will enable us to attend more exhibitions and draw on the extensive experience of Genesis’ personnel.”
