Reseller Agreement

Gail Chiasson, North American Editor

Diversinet Corp., Toronto-based provider to the healthcare industry with total application solutions that securely connect people with their healthcare information providers and payers, has entered into a reseller agreement with Mihealth Global Systems, North Bay, Ont., for distribution of Diversinet’s innovative mobile health solutions based on its patented MobiSecure platform.

The five-year, $5 million deal enables Diversinet to continue to market directly to the U.S. mobile health industry, while 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 pilot project last fall of the MobiSecure platform and Mihealth application by the Blue Sky Family Health Team in North Bay led by Dr. Wendy Graham, founder and president of Mihealth Global Systems.
More than 100 patients participated in the Blue Sky Family Health Team’s trial using the Mihealth application.

The agreement calls for Diversinet to receive annual minimum commitments of $400,000 in year one, $700,000 in year two, and $1 million, $1.3 million and $1.6 million in the following three years. 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 and anywhere.

MobiSecure technology helps payers and providers meet rapidly growing needs for safe, convenient, on-the-go storage and sharing of personal health data. Graham says 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,” says Graham. “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,” says Albert Wahbe, Diversinet chairman and CEO. “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,” he said. “We want investments that translate into tangible benefits, namely improved patient care and better outcomes.”

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