- Acquisition of Bead Technology Patents
- Removal of Obligation to pay future Royalties
Farnham UK, 6 July 2010: Biocompatibles International plc (LSE:BII), the medical technology company, is pleased to announce that it has acquired certain patents protecting its Bead Products, which were previously licensed from Biocure, Inc
In 2002 Biocure granted Biocompatibles a licence to patents which now protect the Bead Product portfolio – DC Bead®, LC BeadTM and Bead BlockTM. These products accounted for sales of £12.7m in 2009. The agreement required that, until March 2021, Biocompatibles pay BioCure a royalty of 5% on sales of the Bead Products. This acquisition removes the obligation to pay further royalties to Biocure.
The Bead Products portfolio is also protected by patents describing further inventions made by Biocompatibles, principally in the field of drug delivery, subsequent to the original licence from Biocure.
Biocompatibles will pay cash consideration of $4.5m (£3.0m) to BioCure, of which $2.5m will be paid in July 2010 and the remaining $2.0m in January 2011. The 2010 payment is covered in the cash guidance which was revised on 16 June 2010. The acquisition will be earnings enhancing from the outset.
Commenting on the patent acquisition, Crispin Simon, Chief Executive, added;
"I am pleased to announce this transaction, which will improve margins in our Oncology Products division and will be earnings enhancing from the current year."
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Contact:
Biocompatibles
Crispin Simon, Chief Executive
Ian Ardill, Finance Director |
+44 (0) 1252 732706 |
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| Anna Keeble |
+44 (0) 7879 818876 |
Biocompatibles International plc (www.biocompatibles.com)
Biocompatibles International plc
Biocompatibles International plc is a leading medical technology company in the field of drug-device combination products.
The Oncology Products Division supplies medical devices from facilities in Farnham, UK and Oxford, CT. These include Drug-Eluting Bead Products which are used in more than 40 countries for the treatment of primary liver cancer (HCC), liver metastases from colorectal cancer, and other cancers; and Brachytherapy products (Radiation-Delivering Seeds) which are used in the treatment of prostate cancer. Our distribution partners include AngioDynamics Inc., Terumo Corporation and Eisai Co. Ltd. We have a clinical collaboration agreement with Bayer Healthcare Pharmaceuticals Inc.
Our Licensing Division includes CellMed, in Alzenau, Germany, which is developing a Drug-Eluting Bead product for the treatment of stroke, based on proprietary stem cell technology; a GLP-1 analogue for the treatment of diabetes and obesity partnered with AstraZeneca; and a cosmetic Dermatology Bead partnered with Merz Pharmaceuticals GmbH. We also have a PC Licensing agreement with Medtronic Inc. in the field of Drug-Eluting Stents.
This news release contains forward-looking statements that reflect Biocompatibles’ current expectation regarding future events. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of Biocompatibles’ research strategy, the applicability of the discoveries made therein, the successful and timely completion of clinical studies and the uncertainties related to the regulatory and commercialisation processes.