{"id":746201,"date":"2023-04-10T08:33:45","date_gmt":"2023-04-10T12:33:45","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/myomo-receives-technology-license-fee-payment-from-china-joint-venture-company\/"},"modified":"2023-04-10T08:33:45","modified_gmt":"2023-04-10T12:33:45","slug":"myomo-receives-technology-license-fee-payment-from-china-joint-venture-company","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/myomo-receives-technology-license-fee-payment-from-china-joint-venture-company\/","title":{"rendered":"Myomo Receives Technology License Fee Payment from China Joint Venture Company"},"content":{"rendered":"

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Myomo Receives Technology License Fee Payment from China Joint Venture Company<\/b><\/p>\n

Payment of $1.7 million permits the start of activities to manufacture and sell the MyoPro\u00ae in China<\/i><\/b><\/p>\n

BOSTON–(BUSINESS WIRE<\/a>)–Myomo, Inc. (NYSE American: MYO) <\/b>(\u201cMyomo\u201d or the \u201cCompany\u201d), a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, announces receipt of the final portion of the initial license fee under the Technology License Agreement with its joint venture company in China, Jiangxi Myomo Medical Assistive Appliance Co. Ltd. (the \u201cJV Company\u201d).<\/p>\n

\nReceipt of the full initial technology license fee enables the start of technology transfer to the JV Company. Once completed, the JV Company will begin the process of submitting existing clinical evidence regarding the safety and efficacy of the MyoPro to the regulatory authorities in China to enable its manufacture and sale to rehabilitation hospitals and patients in China, Hong Kong, Taiwan and Macau. Myomo will account for this approximately $1.7 million payment as license revenue in the second quarter of 2023.<\/p>\n

\n\u201cWe\u2019re pleased that business conditions in China have normalized following the COVID-19 pandemic, enabling payment of the remaining initial license fee. Our teams are now working together to establish local manufacturing and sales operations for the JV Company to serve patients in the greater China territory,” said Paul R. Gudonis, Myomo\u2019s chairman and chief executive officer.<\/p>\n

\n\u201cChina represents the world\u2019s largest market for the MyoPro,\u201d said David Ren, chief executive officer of Anhui Ryzur Medical Equipment Manufacturing Co. Ltd., the majority partner in the JV Company. \u201cOur initial business development efforts have identified hundreds of rehabilitation hospitals and other facilities interested in testing the MyoPro on patients suffering from upper extremity paralysis. We are working to obtain regulatory approval to manufacture and sell the MyoPro in China as quickly as possible.\u201d<\/p>\n

\nUnder the Technology License Agreement, Myomo has received an upfront licensing fee of $2.7 million and the JV Company has entered into an escalating purchase commitment for a minimum of $10.75 million in MyoPro Control System Units during the next 10 years, subject to receipt of regulatory approvals necessary to permit sales of the product. The JV Company will work with Ryzur Medical and Myomo to develop enhanced technologies and new devices based on the current Myomo technology for the greater China territory. Myomo holds a 19.9% ownership interest in the JV Company.<\/p>\n

About Myomo<\/b><\/p>\n

\nMyomo, Inc. is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or other neuromuscular disease or injury. It is currently the only marketed device that, sensing a patient\u2019s own EMG signals through non-invasive sensors on the arm, can restore an individual\u2019s ability to perform activities of daily living, including feeding themselves, carrying objects and doing household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in Boston, Massachusetts, with sales and clinical professionals across the U.S. and representatives internationally. For more information, please visit www.myomo.com<\/a>.<\/p>\n

Forward-Looking Statements<\/b><\/p>\n

\nThis press release contains forward-looking statements regarding the Company\u2019s future business expectations, including expectations for license revenue in the second quarter of 2023, receipt of regulatory approval to manufacture and sell the MyoPro in China, Hong Kong, Taiwan and Macau, and the ability of the JV Company to ramp manufacturing of the MyoPro, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.<\/p>\n

\nThese factors include, among other things:<\/p>\n