Yokneam-based Given Imaging(Nasdaq: GIVN), the ‘camera-in-a-pill’ developer, announced today that it had formed a joint venture with Marubeni Corporation and Suzuken Co to introduce and market its gastrointestinal diagnostics system in Japan.

The joint venture, called Given Imaging KK, will submit a request for regulatory and insurance reimbursement coverage in Japan, and then launch and market the Given Diagnostic System.

Marubeni and Suzuken will together invest JPY 550 million, or $4.2 million, in the joint venture company, for a 49% equity stake. Given Imaging will retain the controlling share. Other terms of the joint venture were not disclosed.

Given Imaging said it might take two years to attain approval from Japan’s Ministry of Health and Labor to market its diagnostic system in Japan.

Given’s diagnostic system works through a disposable miniature video camera contained in a disposable pill –called the M2A capsule - that is ingested by a patient. The capsule delivers color images from the digestive tract.

Given Imaging president and CEO Dr. Gavriel Meron said, “We see enormous potential for our M2A capsule endoscope in Japan and have selected the right partners to accelerate our penetration. By combining Marubeni's unparalleled presence in Japan with Suzuken's broad medical products distribution channel and Given's proven marketing experience, we have created a formidable new force in gastrointestinal diagnostics."

Marubeni Business Incubation Department corporate vice president Hitoshi Sakamoto said, " Japan is the second largest market in the world of gastrointestinal diagnostics and we are quite confident of furthering the business successfully. We are also pleased to establish this important collaboration with Given Imaging and Suzuken which will help deepen the activity of Marubeni Corporation for the business incubation of innovative technology commercialization in Japan."

Suzuken, which recorded over $7 billion in sales last year, was appointed by Given Imaging KK as its exclusive sub- distributor in Japan. Marubeni, with $75 billion in trading volume last year, was appointed Given Imaging KK's exclusive import agent. Triangle Technologies, which has helped form numerous strategic alliances in Japan, assisted Given Imaging in forming the joint venture.

Suzuken Business Development Department General Manager Shigeru Wada said, “We would like to release such an excellent product for patients as early as possible. We believe this product will be a great business for Suzuken.”

Given Imaging shares closed on Friday at $13.99 on the Nasdaq Market.

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