Mr. Richard Buzbuzian reports

NUGEN SIGNS $204M DISTRIBUTION AGREEMENT WITH GLOBAL LEADER IN THE DIABETIC INDUSTRY

Nugen Medical Devices Inc. has entered into a distribution agreement for its needle-free InsuJet medical device and consumables with Sol-Millennium Medical Inc. (Sol-M) of Chicago, Ill., for a term of five years which Nugen estimates the value at approximately $204-million with estimated gross margins of 72 per cent.

Sol-M is now the preferred distributor of InsuJet in Canada, Brazil, France and Spain where Sol-M has an extensive existing business footprint in the safety syringe and the diabetic supply business and where InsuJet is approved for sale as a medical device. Sol-M will be required to fulfill minimum yearly purchases to maintain its five-year distribution rights which Nugen estimates to be approximately $132-million.

"Today's announcement of our $204-million, five-year distribution agreement with Sol-M at 72-per-cent gross margins represents the beginning of the global rollout of our B2B business. InsuJet is approved for sale as a medical device in 42 countries and our agreement with Sol-M represents only four countries where we are approved for sale as a medical device," commented Richard Buzbuzian, chief executive officer. "This agreement offers investors great leverage to the diabetic health care space. With anticipation, we look forward to reporting to shareholders additional wins in Q3."

Headquartered in Chicago, Ill., Sol-M are global leaders in the diabetic industry with five offices around the world.

"During the COVID-19 pandemic, we sold over two billion safety syringes annually, so it is fair to say we know our market well. At Sol-M, we believe InsuJet is a game changer for how insulin soon will be administered by diabetics around the world," commented Liang Lin, chief executive officer at Sol-M. "Needle or no needle? How would you prefer to take your insulin? It's a simple question and we believe almost any diabetic would reply 'needle free please.' We are delighted to be working with Richard and the Nugen team in what is truly a global disruptive opportunity for diabetics to become needle free in their treatment of their diabetes. InsuJet is the needle-free solution for millions of diabetics who suffer daily with their injections."

National country-wide rollout of InsuJet in each of Canada, Spain, France and Brazil will occur in Q1 of 2024.

In Canada, Spain, France and Brazil, InsuJet will be available for purchase in all major pharmacies, grocery stores, hospitals, diabetic clinics, and offices of endocrinologists and diabetic nurse practitioners.

The combined diabetic population of these four counties is estimated at 8,803,807 people.

The total addressable market of these four countries is estimated to be $7,923-million based upon a $900 lifetime value of InsuJet and an aggregate diabetic population as described herein.

Market statistics:

Canadian market:

Population: 38,781,291

Diabetes prevalence: 7.7 per cent

Estimated insulin users: 865,986

Spanish market:

Population: 47,519,628

Diabetes prevalence: 10.3 per cent

Estimated insulin users: 1,419,411

French market:

Population: 64,756,584

Diabetes prevalence: 5.3 per cent

Estimated insulin users: 995,309

Brazilian market:

Population: 216,422,446

Diabetes prevalence: 8.8 per cent

Estimated insulin users: 5,523,101

Share consolidation

Until the company makes an application to uplist to a senior stock exchange, a share consolidation is not expected to occur before this time, if at all.

About Nugen Medical Devices Inc.

Nugen is a specialty medical device company that is marketing and selling its next-generation InsuJet needle-free injection system designed to improve the lives of millions of diabetics. InsuJet is approved for sale in 42 countries around the world.

We seek Safe Harbor.