SensoDetect has signed a LOI (letter Of Intent) with a South Korean distributor. The parties met for the first time this summer in connection with a major conference in the Copenhagen area and now, after a second meeting, the parties agreed on the bases for further cooperation as clarified in the LOI. The aim is to soon take the next step towards a distribution agreement primarily for the South Korean market.
The timetable for cooperation is in line with the plan SensoDetect set up for the launch of the new BERA 3.0. The aim is therefore to set the foundations of the cooperation agreement as soon as possible, beginning at 2018. This agreement is divided into a few steps to ensure a positive development in a large and interesting market.
Initially, SensoDetect, together with the distributor’s healthcare partners in South Korea, make a smaller study to ensure that the tests provide the same response for this population. At the same time, additional opportunities for refinement and development of specific markers for a new population are created. The focus will be on ADHD in the first step.
After the BERA technology has been verified on the local market, the intention is that the distributor should aim to bring the technology as a standard for the diagnosis support of ADHD in South Korea. The first step in the launch is to clinicians with larger volumes and it is expected that current clinics will do at least 600 measurements per year and machine. BERA has a capacity of considerably higher volumes, but SensoDetects strategy is to charge per test, so it requires primarily only a minimum number to sign contracts. ROI (Return On Investment) for BERA is estimated at about 3-6 Months.
The South Korean market even has a slightly higher degree, 27.6% *, of mental illness than other countries ’ average, about 25% * *. The suicide rate is also high and the country is investing heavily in trying to address the mental ill-health in the country. It has increased the budget for mental ill health from about 18 MUSD 2010 to about 43 MUSD 2014 and has since stated that it wants to invest even harder to get set on mental ill-health. South Korea has a population of just over 51 million and the need for an increase in the budget for mental ill-health is clear. Therefore, the distributor and KOL (Key Opinion Leaders) states that, it is important to find effective solutions. SensoDetect can play an important role in this work and the distributor sees opportunities to standardize the method.
”It is very gratifying to be able to reach this point where we see a clear declaration of intent and where we have already developed a plan for further steps. The interest is very large from the distributor and the KOL they have engaged. We look forward to a smaller study to ensure all the data for this population and at the same time get the opportunity to connect with some of the country’s KOL for further work with market introduction and further research. The South Korean market is particularly interesting for us and with the right partner I see great opportunities”, says CEO Johan Olson, SensoDetect Ab.