Service agreement between Medwell Capital and Spectral Diagnostics is amended
EDMONTON, Aug. 10, 2012 /CNW/ - Medwell Capital Corp. ("Medwell") (TSX-V: MWC) today announced that the service agreement under which Medwell provides clinical, regulatory and capital markets consulting services to Spectral Diagnostics (TSX: SDI) has been amended to reflect a change in the level of service provided retroactive to August 1, 2012.
The services provided by Medwell under the amended agreement will no longer include clinical and regulatory consulting. This will reduce Medwell's costs to service this portion of the existing contract. The scope of services under the amended agreement will consist of corporate services, including strategic planning and public relations (including investor relations), in each case as required by Spectral to support it in its clinical and commercial operations, and is set at $400,000 per year plus expenses.
"We look forward to continuing with our commitment to Spectral through this agreement and to work together to maximize the commercial value of the Spectral opportunity," said Kevin Giese, President and CEO of Medwell Capital.
About Spectral Diagnostics
Spectral is a Phase III company seeking U.S. FDA approval for its lead theranostics product for the treatment of severe sepsis with septic shock. Toraymyxin is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream. Directed by the Company's Endotoxin Activity Assay (EAA™), the only FDA cleared diagnostic for the risk of developing sepsis. Spectral's EUPHRATES trial is the world's second theranostics trial in the area of sepsis.
Toraymyxin has been approved for therapeutic use in Japan and Europe, and has been used safely and effectively in more than 100,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for Toraymyxin, and in November 2010, signed an exclusive distribution agreement for this product in Canada. More than 250,000 patients are diagnosed with severe sepsis and septic shock in North America each year, representing a greater than $1 billion market opportunity for Spectral. Spectral is listed on the Toronto Stock Exchange under the symbol SDI, and on the OTQ QX under the symbol DIAGF. For more information please visit www.spectraldx.com
About Medwell Capital Corp.
Medwell Capital Corp. is a Canadian-based investment and advisory firm. For further information please visit www.medwellcapital.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Medwell Capital Corp.For further information: