CALGARY, Canada, Oct. 5, 2011 /PRNewswire/ -- Fero Industries, Inc. (OTCQB: FROI) is pleased to announce that it has entered into an exclusive Distribution Agreement with Behestan Behdasht (P.J.S.) ("Behestan") for the marketing and distribution of Sucanon® within the country of Iran.
The Distribution Agreement calls for a minimum purchase of US$11 million over a period of 4 years and gives Behestan the exclusive right to market and sell Sucanon® through its established distribution channels in Iran. The agreement requires a minimum order of 250,000 retail packages of Sucanon® during Year 1, increasing to a minimum of 1,450,000 retail packages during Year 4.
Behestan is expected to immediately begin the regulatory process with the Ministry of Health and Medical Education (MOHME) required for the sale of Sucanon® in Iran, while Fero will be responsible for acquiring the required humanitarian exemption from the U.S. Treasury Departments' Office of Foreign Asset Control. The companies expect that the licensing process will be completed and the first shipment of Sucanon® will commence within 180 days.
"The rapid increase in the number of people in the Middle East with type-2 diabetes is a direct indicator of the need for Sucanon® in the region and we are fortunate to have aligned ourselves with a company of Behestan's caliber to lead the product launch in Iran," said Mr. Luis Lopez, President and COO of Fero Industries. "Behestan's local business and consumer knowledge along with their established pharmaceutical and healthcare products distribution channels make them an ideal partner. We intend to expand this business model across the Middle East."
Iran and other countries in the Middle East have one of the largest and fastest growing diabetic populations in the world. Six countries in the Middle East and North African Region rank among the world's top ten for diabetes prevalence. Current estimates show that 26.6 million people have Type-2 diabetes in the region (7.7% of the adult population) with that number expected to nearly double in the next 20 years. Similarly, the number of people with Impaired Glucose Intolerance ("IGT") or "pre-diabetes" is estimated to be an additional 24.4 million cases (7.1% of the adult population). Healthcare costs associated with diabetes in the region were estimated to be $5.6 billion in 2010.
About Behestan Behdasht
Established in 2004, Behestan Behdasht (P.J.S.) is a focused consumer healthcare and OTC products importation and marketing company located in Iran. As a trusted business partner, Behestan Behdasht offers international pharmaceutical and healthcare companies with access to the Iranian consumer market and provides local expertise regarding regulatory affairs, commercial services, business development, and marketing. Behestan Behdasht distributes nutraceuticals, cosmetics, vitamins, dental and hygiene, and hospital care products from many leading companies including Merck & Co., Astellas Pharma Inc., B. Braun, Sandoz, Hexal AG, Solvay S.A., and Leo Pharma A/S.
Behestan Behdasht is a part of The Behestan Group, a conglomerate of pharmaceutical and medical products importers, distributors, and manufactures in Iran. The Behestan Group is a founding member and current chairperson of the Iranian Pharmaceutical Products Importers Association. For more information, please visit www.behestandarou.com.
Sucanon® is one of only three approved drugs in the multi-billion dollar market for a class of diabetic medications called "insulin sensitizers". Pre-clinical and clinical studies show that Sucanon® and other insulin sensitizers lower a patient's blood sugar by increasing the muscle, fat and liver's sensitivity to the body's own naturally produced insulin. Sucanon® has been approved for prescription sale in China and Peru. Sucanon® is also approved as an OTC treatment for type-2 diabetes by regulatory authorities in Mexico, and is distributed there under an exclusive agreement with Merck S.A. de C.V.
About Fero Industries Inc.
Fero Industries, Inc. (OTCQB: FROI) is focused on diabetes prevention and treatments. The Company holds the intellectual property and all exclusive world-wide rights related to the production, marketing, and distribution of Sucanon®, an oral treatment for type-2 diabetes. Sucanon® is a member of a class of diabetic medications called insulin sensitizers. Insulin sensitizers lower blood sugar by increasing the muscle, fat and liver's sensitivity to insulin. Insulin sensitizers are blood sugar normalizing or euglycemic drugs that help return the blood sugar to the normal range without the risk of low blood sugars. Fero's strategy is to increase awareness, acceptance, and distribution of Sucanon® globally.
For investor relations contact:
Paramount Advisors, LLC
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Fero Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements.
The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings".
|SOURCE Fero Industries, Inc.|
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