ONTARIO, Canada, July 12, 2011 /PRNewswire/ -- Panacea Global, Inc., ("the Company") (OTCQB: PANG), a biopharmaceutical company specializing in blood (protein), serum and tissue tests to diagnose and monitor cancer, today announced that it has signed a multi-year exclusive sales agreement with Palmverse Limited for its cancer detection system. The contract, signed July 2011, is valued at a minimum $8.75 million in revenue over the next two years based upon Palmverse meeting certain annual commitments.
Palmverse Limited will be responsible for the exclusive sale and distribution of the Company's cancer detection system in the territory of Belarus. The cancer detection system tests for the presence of various types of cancer with innovative cancer detection tests including: BC Detect® which detects breast cancer; CC Detect® which detects colorectal cancer; LC Detect® which detects lung cancer; and PC Detect® which detects prostate cancer.
Under the terms of the agreement, in the first calendar year of the contract Panacea expects to recognize a minimum of $280,000 in revenue. If Palmverse Limited meets the minimum order requirement, the minimum volume will increase for both the second and third year of the contract, resulting in a potential $8.75 million in revenue for the two years. The contract also includes the option for an extension beyond the third calendar year, with an increased minimum volume and an estimated $7 million in revenues for each subsequent year.
"This contract demonstrates the value of Panacea's innovative diagnostic products," commented Dr. Mahmood Moshiri, President and Chief Executive Officer of Panacea Global, Inc. "We are currently in discussions to supply our tests to a number of countries, including: Ireland, Switzerland, the Czech Republic, Romania, Russia, Turkey and Azerbaijan in Europe; China, Japan, India and Taiwan in the Asia-Pacific region; and Iran, the United Ar