PMD Device Solutions Partners with Red Line Microconsult AB to Expand Coala-Life Monitor in Europe

PMD Device Solutions (PMDS) has signed a Letter of Intent with Magnus Sorlander, CEO of Red Line Microconsult AB, to develop and sell the Coala-Life Monitor in Europe. The agreement, finalized on May 13, 2024, includes a 2 MSEK annual license fee and a 5% royalty on all device sales, with an additional 2.5% royalty on new developments requiring the device's background IP.

Why this matters: This partnership has the potential to significantly impact the lives of European Cardiovascular Disease (CVD) patients, who account for 40% of the EU/US healthcare spending. The expansion of the Coala-Life Monitor in Europe could lead to improved health outcomes and reduced healthcare costs for millions of people.

Under the terms of the agreement, PMDS will retain and service the intellectual property, regulatory approvals, supply chain, and rights to sell the Coala-Life Monitor in the US. Magnus Sorlander, the founder of Coala-Life, will have the right to develop the intellectual property and support sales of the device across Sweden and Europe.

Myles Murray, CEO of PMDS, expressed his enthusiasm for the partnership, stating, "The acquisition of the Coala-Life revenue-generating assets has allowed PMDS to accelerate its entry into the US market. This partnership allows PMDS to work with a fellow founder on innovations in the field of cardiac health. Together, we can combine our expertise and resources to maximise the potential of the Coala-Life monitor, allowing each of us to continue focusing on growing our core businesses."

Magnus Sorlander, CEO of Red Line Microconsult AB, shared his excitement about the opportunity, saying, "I am excited about the opportunity to continue serving the existing users of the Coala Device. Coala is a one-of-a-kind product on the market, and working together with PMDS, existing users, and other partners, we can develop, improve, and offer the expanded functionality that has always been a part of the original vision."

The Coala-Life Monitor is currently used by approximately 900 patients in Sweden and 100 patients in the US. The innovative technology has the potential to significantly impact European Cardiovascular Disease (CVD) patients, who account for 40% of the EU/US healthcare spending.

PMDS develops and sells medical products for respiratory monitoring, with its primary product being RespiraSense, a solution used for monitoring respiratory rate to support the detection of patient deterioration early and to avoid preventable respiratory failure and adverse patient outcomes. The company's shares are listed on Nasdaq First North Growth Market (STO: PMDS).

The agreement between PMD Device Solutions and Red Line Microconsult AB marks a significant step forward in expanding the reach and impact of the Coala-Life Monitor in Europe. With a buy-out clause allowing for the sale of all IP and regulatory ownership for a fee of 1.6 MSEK plus 5 times the last 12 months' royalty fees, both companies are well-positioned to maximize the potential of this innovative cardiac health technology.

Key Takeaways

• PMDS signs Letter of Intent with Red Line Microconsult AB to develop and sell Coala-Life Monitor in Europe.
• Agreement includes 2 MSEK annual license fee and 5% royalty on device sales.
• Partnership aims to improve health outcomes and reduce healthcare costs for European CVD patients.
• PMDS retains US rights, while Red Line Microconsult AB develops IP and supports European sales.
• Coala-Life Monitor currently used by 900 patients in Sweden and 100 in the US.