MISSISSAUGA, ON, Nov. 4, 2013 /CNW/ - 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
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."
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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that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will",
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expressions. These forward-looking statements involve risk and
uncertainties, including the difficulty in predicting product
approvals, acceptance of and demands for new products, the impact of
the products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which could
cause results, performance, or achievements to differ materially from
the results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific to
the Company. Investors should consult the Company's ongoing quarterly
filings for additional information on risks and uncertainties relating
to these forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Company assumes no
obligation to update or alter any forward-looking statements whether as
a result of new information, further events or otherwise.
SOURCE: Covalon Technologies Ltd.
For further information:
Brian Pedlar, CEO, Covalon Technologies Ltd.
Phone: 905.568.8400 x 233
Toll free: 1.877.711.6055
Web site: www.covalon.com