Acquisition of Bead Technology Patents
- 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 |
| Anna Keeble | +44 (0) 7879 818876 |