Miraculins Executes Agreement for the Sale and Distribution of up to $90 Million USD in ScoutDS® Diabetes Screening Devices in China

August 14, 2014

WINNIPEG, Manitoba – August 14, 2014 - Miraculins Inc. (TSX-V:MOM) (“Miraculins” or the “Company”), a medical diagnostic company focused on acquiring, developing and commercializing diagnostic tests and risk assessment technologies for unmet clinical needs, today announces that it has executed a definitive agreement(the “Agreement”) for the sale and distribution of Scout DS® diabetes screening devices into China with Catalyn Medical Technologies Limited (“Catalyn”), a privately-owned and Hong Kong based medical device import company. Cachet Pharmaceutical Co., Ltd. (“Cachet”) has been co-appointed as the exclusive distributor of the Scout DS® devices in Mainland China by Miraculins and Catalyn.

The Scout DS® device is the world’s first non-invasive and highly-sensitive testing device designed to measure diabetes related biomarkers in the skin to help detect pre-diabetes and type 2 diabetes. It does not require a blood draw or fasting and generates aresult in as little as 80 seconds. The Scout DS® device uses visible light to measure the optical signature of fluorescent biomarkers in the skin,the accumulation of which are accelerated by abnormal blood sugar levels and oxidative stress.

Cachet is a 4 Billion RMB market cap (or about $655 Million USD) wholesale/retail drug distribution and medical device distributor, with over 2.5 Billion RMB (or about $410 Million USD) in annual sales in China.Cachet’s largest shareholder, the China Youth Industrial Development Corporation, is owned directly by the Central Committee of the Communist Youth League of China. Cachet is also listed on the Shenzhen Stock Exchange (stock name: Cachet; stock code: 002462).

“I am very pleased to confirm that Miraculins has now executed an agreement that allows for the sale and distribution ofScout DS® devices into China, which represents a significant potential revenue stream for the Company over the term of the agreement,” said Christopher J. Moreau, President and CEO of Miraculins Inc. “With Cachet Pharmaceutical appointed as our exclusive distributor for Mainland China, we are confident that we have the right partner in place to penetrate the marketplace and bring this new testing technology to millions of Chinese at risk and in need. This is truly a transformative agreement for Miraculins and for the Scout DS® device as a ground-breaking disease screening technology.”

The Agreement outlines the terms and conditions, including Scout DS® device unit pricing, upfront and milestone payments, product ordering and diligence requirements, and ongoing responsibilities of the parties.

Key terms of the Agreement include:

The term of the Agreement is to extend for five years from the date of procurement of CFDA (Chinese Food and Drug Administration) regulatory clearance of the Scout DS® device,subject to minimum Scout DS® device sales orders being met;

Miraculins to receive certain upfront and milestone payments;

Initial minimum guaranteed order for $15 Million USD in Scout DS® devices for the first year of the term, confirmed on execution of the Agreement, and to be activated on procurement of CFDA regulatory clearance of the Scout DS® device;

Subsequent minimum orders for $15 Million USD in Scout DS® devices for each of years two, three and four of the term, totalling $45 Million USD;

Subsequent minimum order for $30 Million USD in Scout DS® devices in year five of the term;

Miraculins to be responsible for leading the CFDA regulatory clearance process and its related costs, with Cachet providing guidance and support as necessary;

Miraculins to retain the right to establish programs for ongoing device servicing and maintenance once the Scout DS® devices are sold into the field.


The Scout DS® device has received regulatory clearance in Canada and is CE marked throughout the European Union,and Miraculins has recently filed pre-submission documentation with the USFDA (United States Food and Drug Administration) towards securing Scout DS® device marketing clearance in the United States.

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“I am very pleased to confirm that Miraculins has now executed an agreement that allows for the sale and distribution ofScout DS® devices into China, which represents a significant potential revenue stream for the Company over the term of the agreement,” said Christopher J. Moreau, President and CEO of Miraculins Inc. “With Cachet Pharmaceutical appointed as our exclusive distributor for Mainland China, we are confident that we have the right partner in place to penetrate the marketplace and bring this new testing technology to millions of Chinese at risk and in need. This is truly a transformative agreement for Miraculins and for the Scout DS® device as a ground-breaking disease screening technology.”