5-year, $5 million deal enables Diversinet to focus on U.S.
while Mihealth Global Systems serves Canada and beyond
TORONTO, Jan. 13 /CNW/ - Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF), a leader in "connected and protected"
mobile healthcare communications, has entered into a reseller agreement
with Mihealth Global Systems, of North Bay, Ont., for distribution of Diversinet's innovative mobile
health solutions based on its patented MobiSecure® platform.
While Diversinet continues to market directly to the U.S. mobile health
industry, Mihealth Global Systems will act as the exclusive distributor
of the MobiSecure platform in Canada and as a nonexclusive distributor
to the rest of the world excluding the United States.
The new relationship between the two mobile health pioneers follows a
highly successful trial of the MobiSecure platform and Mihealth
application by the Blue Sky Family Health Team in North Bay led by Dr.
Wendy Graham, who founded Mihealth Global Systems and serves as its
president. More than 100 patients participated in the Blue Sky Family
Health Team's trial using the Mihealth application, which can run on
more than 200 kinds of mobile devices.
The 5 year agreement calls for Diversinet to receive annual minimum
commitments of $400,000 in year 1, $700,000 in year 2, $1 million in
year 3, $1.3 million in year 4 and $1.6 million in year 5. Under the
agreement, after the first year, Mihealth Global Systems can terminate
its Canadian exclusivity and payment of the minimum commitment amounts
upon 180 days notice. Included in the first-year minimum commitment,
Mihealth Global Systems is licensing software for its own use, taking
its existing pilot program into production.
Diversinet's MobiSecure technology capitalizes on the booming worldwide
appetite for smart phones and tablets, and it provides proven and
reliable mobile application platforms that securely connect people with
their healthcare information, payers and providers - anyway, anytime
MobiSecure technology helps payers and providers meet rapidly growing
needs for safe, convenient, on-the-go storage and sharing of personal
health data. Graham said the Mihealth Global Systems mobile health
solution is entirely consistent with efforts of Canada Health Infoway, the independent, not-for-profit organization funded by the Canadian
government to accelerate the development of electronic health record
projects in Canada.
"We learned from our trial that the MobiSecure platform and applications
address Canadian and worldwide needs to deliver healthcare more
efficiently while improving the quality of care," Graham said.
"Evidence is building to demonstrate the value of using information
technologies for integrated primary care networks, particularly in
managing chronic diseases, which are on the rise."
Under the new agreement, Mihealth Global Systems will initially make the
solution tested in North Bay available to all medical clinics in
Ontario, then eventually throughout Canada.
"We're looking forward to continuing our close work with Dr. Graham, who
is well-respected and highly-regarded as an innovator in mHealth
technology applications," said Diversinet Chairman and CEO Albert
Wahbe. "Our agreement with Mihealth Global Systems is strategic for
Diversinet in two ways: Mihealth Global Systems' commitment clearly
demonstrates the value and benefits of our MobiSecure healthcare IT
solutions, while it enables us to devote our full attention to
expanding the market for our solutions in the U.S."
Dr. Jeffrey Turnbull, President of the Canadian Medical Association,
recently pointed to a need to accelerate health information technology
adoption in Canada. "Most patient care in Canada occurs in primary care
settings, yet most health IT investments made to-date have centered on
large-scale systems," Turnbull stated in a recent press release. "We
want investments that translate into tangible benefits, namely improved
patient care and better outcomes."
About Mihealth Global Systems
Mihealth Global Systems leverages Dr. Wendy Graham's medical expertise
and Diversinet's MobiSecure® platform to offer the healthcare market extremely secure and connected
turnkey mobile healthcare solutions. These solutions can support
chronic disease care and management, routine screening, self-testing,
and key family health data. The patient-oriented solutions consolidate,
secure and facilitate treatment, as well as patient-provider
communications and follow-up scheduling and appointment reminders.
Connect with Mihealth Global at www.mihealthglobal.com.
Diversinet Corp. (TSX Venture: DIV, OTCBB: DVNTF) provides the
healthcare industry with proven, reliable technology for mobile
applications that securely connect people with their healthcare
information, payers and providers - anyway, anytime and anywhere.
Diversinet's MobiSecure® platform helps payers and providers meet rapidly growing needs for safe,
convenient, on-the-go storage and sharing of personal health data.
Connect with Diversinet Corp. at www.diversinet.com. Its tagline is "Healthcare. Connected and Protected."
The Private Securities Litigation Reform Act of 1995 and Canadian
securities laws provide a "safe harbour" for forward-looking
statements. Certain information included in this press release (as well
as information included in oral statements or other written statements
made or to be made by the company) contains statements that are
forward-looking, such as statements relating to the success of current
product offerings. Such forward-looking information involves important
risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ
materially from those expressed in any forward-looking statements made
by or on behalf of the company. For a description of additional risks
and uncertainties, please refer to the company's filings with the
Securities and Exchange Commission available at www.sec.gov and Canadian securities regulatory authorities available at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
MobiSecure is a registered trademark of Diversinet Corp.
SOURCE Diversinet Corp.
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