As the joint venture agreement is being drawn up, arms' length parties KDA Group (TSX-V:KDA) and ZoomMed (TSX-V:ZMD) have agreed to partner with respect to expanding the footprint of ZRx Prescriber, a web application of ZoomMed that simplifies prescription writing for doctors and nurse practitioners.
The ZRx cloud-based Prescriber solution dynamically analyzes each user's prescribing pattern and displays the appropriate expected medication. A stand-alone product, ZoomMed trumpets the ease of integration of ZRx Prescriber into electronic medical record applications as well.
Per the agreement, KDA Group will be allowed to distribute the product on a non-exclusive basis throughout the United States, as it looks to capture share in a U.S. health-care solutions market estimated at $800 million. A JV agreement is expected soon to finalize the terms that will unify efforts to develop and commercialize ZRx Prescriber in the States.
As it stands, the agreement states that KDA Group, a service provider to the pharmaceutical market for the distribution of generic drugs and specialized solutions, will issue 10 million common shares of its stock to ZoomMed at a deemed value of $1.72 million for the rights. ZoomMed will also be entitled to royalties up to $2.5 million based up certain conditions being met.
"The e-prescribing market for 900,000 American physicians offers the perfect window of opportunity for the commercialization of ZoomMed's software solution and business model," said Marc Lemieux, President and CEO of KDA Group, in Friday's news release.
Shares of ZMD gained half a cent to 2.5 cents by Friday's close, after printing as high as three cents in early afternoon trading. Shares of KDA closed ahead two cents to 10 cents, marking a one-month high.
Related Stories
