MISSISSAUGA, ON, Nov. 4, 2013 /PRNewswire/ - Covalon Technologies
Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced medical
technologies company, today announced that it has licensed its
antimicrobial silicone adhesive technology to Molnlycke Heath Care
("Molnlycke").
Under the license agreement, Covalon has granted Molnlycke the
exclusive rights to exploit Covalon's patent-pending antimicrobial
silicone adhesive technology in the field of single-use surgical,
wound care and vascular access medical dressings.
Covalon will receive $3.5 million
in upfront license fees and additional ongoing minimum royalties,
milestone payments and other fees. Covalon retains the rights
to exploit the antimicrobial silicone adhesive technology in other
fields and commercialize new life-saving products in its
development pipeline while continuing to distribute its other
products.
The parties simultaneously signed a supply and distribution
agreement under which Covalon will provide to Molnlycke its United
States Food and Drug Administration (FDA) cleared products,
SurgiClear™ and IV Clear™, for distribution under the Molnlycke
brand.
Covalon's antimicrobial silicone adhesive technology is the key
component of IV Clear and SurgiClear, a transformative technology
in the medical dressing market because it is extremely gentle on
the skin and has powerful antimicrobial capabilities. IV
Clear and SurgiClear have been clinically validated by leading
clinicians in some of the largest and most well respected medical
institutions in the United States,
Canada and the Middle East as an important tool in the fight
against healthcare acquired infections. Of the approximately
$10 billion spent annually treating
healthcare acquired infections in the
United States, over half the cost is attributed to blood
stream and surgical site infections - the two primary markets
addressed by IV Clear and SurgiClear.
Brian Pedlar, Covalon's Chief
Executive Officer said, "We are delighted to sign a major agreement
with Molnlycke, the best partner for Covalon to license its
antimicrobial silicone adhesive to because of their domination of
the silicone wound dressing market. Molnlycke's global reach and
talented sales force will greatly expand the distribution of
Covalon's antimicrobial silicone adhesive technology in the
surgical, wound care and vascular access markets. With some 7,400
staff across over 30 countries and over 1.7 billion medical
dressings and surgical products made per year, Molnlycke is the
clear market leader in silicone wound dressings. Molnlycke is well
positioned to take IV Clear and SurgiClear into market leading
positions. This license and distribution agreement is a major
validation of our team's ability to research, develop and
commercialize breakthrough products and we are looking forward to
developing new products with Molnlycke based on our antimicrobial
silicone adhesive technology."
About Covalon
Covalon Technologies Ltd. researches, develops and
commercializes new healthcare technologies that help save lives
around the world. Covalon's patented technologies, products and
services address the advanced healthcare needs of medical device
companies, healthcare providers and individual consumers. Covalon's
technologies are used to prevent, detect and manage medical
conditions in specialty areas such as wound care, tissue repair,
infection control, disease management, medical device coatings and
biocompatibility. To learn more about Covalon, visit our website at
www.covalon.com
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whether as a result of new information, further events or
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SOURCE Covalon Technologies Ltd.