Business
Covalon Announces Major License and Distribution Agreement with Molnlycke Health Care
MISSISSAUGA, ON , Nov. 4, 2013 /CNW/ - Covalon Technologies Ltd. (the "Company" or "Cova...
About this update from Covalon Technologies Ltd.
[{"type":"text","content":"\n\n\nMISSISSAUGA, ON, Nov. 4, 2013 /CNW/ - Covalon Technologies Ltd. (the\n \"Company\" or \"Covalon\") (TSXV: COV), an advanced medical technologies\n company, today announced that it has licensed its antimicrobial\n silicone adhesive technology to Molnlycke Heath Care (\"Molnlycke\").\n\n\nUnder the license agreement, Covalon has granted Molnlycke the exclusive\n rights to exploit Covalon's patent-pending antimicrobial silicone\n adhesive technology in the field of single-use surgical, wound care and\n vascular access medical dressings.\n\n\nCovalon will receive $3.5 million in upfront license fees and additional\n ongoing minimum royalties, milestone payments and other fees.  Covalon\n retains the rights to exploit the antimicrobial silicone adhesive\n technology in other fields and commercialize new life-saving products\n in its development pipeline while continuing to distribute its other\n products.\n\n\nThe parties simultaneously signed a supply and distribution agreement\n under which Covalon will provide to Molnlycke its United States Food\n and Drug Administration (FDA) cleared products, SurgiClear™ and IV\n Clear™, for distribution under the Molnlycke brand.\n\n\nCovalon's antimicrobial silicone adhesive technology is the key\n component of IV Clear and SurgiClear, a transformative technology in\n the medical dressing market because it is extremely gentle on the skin\n and has powerful antimicrobial capabilities.  IV Clear and SurgiClear\n have been clinically validated by leading clinicians in some of the\n largest and most well respected medical institutions in the United\n States, Canada and the Middle East as an important tool in the fight\n against healthcare acquired infections. Of the approximately $10\n billion spent annually treating healthcare acquired infections in the\n United States, over half the cost is attributed to blood stream and\n surgical site infections - the two primary markets addressed by IV\n Clear and SurgiClear.\n\n\nBrian Pedlar, Covalon's Chief Executive Officer said, \"We are delighted\n to sign a major agreement with Molnlycke, the best partner for Covalon\n to license its antimicrobial silicone adhesive to because of their\n domination of the silicone wound dressing market. Molnlycke's global\n reach and talented sales force will greatly expand the distribution...