Business
Update and appointment of director
Update and appointment of director.
About this update from Rua Life Sciences Plc
[{"type":"text","content":"\n \nRNS Number : 4420F AorTech International PLC 23 May 2013 \n\nAorTech International Plc (\"Aortech\" or the \"Company\")\n \nShareholder Update\n \n \nIntroduction\n \nIn December 2012 we announced our interim results and the resolution of the dispute with St Jude Medical, Inc. (\"St Jude\"). Your Board believes that now is an appropriate time to update shareholders on developments since that time and the strategy for the Company going forward.\n \n \nSt Jude Transition arrangements\n \nThe agreement with St Jude envisaged the manufacturing facility in Rogers transferring to St Jude at the end of March 2013 and I am pleased to confirm that this has been concluded satisfactorily together with the transfer of the majority of our US employees.\n \nIn addition all payments due by St Jude under the agreement have now been made including the final $500,000 retention which was paid in April 2013.\n \nDuring the period December 2012 to March 2013 AorTech continued to operate the Rogers facility producing Polymer for customers excluding St Jude and during the said period St Jude were responsible for the factory's operating costs. The balance of inventory produced during this period is held on a consignment basis and is available for delivery to customers during the remainder of this calendar year.\n \nAorTech has, with effect from 1st April 2013, retained access to the Rogers customer application laboratory until the 31st December 2013 to enable the Company to manufacture small batches of customer material and development products.\n \nIt should be noted that AorTech has effectively ceased manufacturing volume material and, as a result, there has been a significant reduction in the Company's costs and overheads in the US.\n \n \nBusiness Strategy\n \nIn our strategic review last year we identified that the key value driver for the Company was its Intellectual Property comprising material patents and the critical know-how to the manufacturing process.\n \nIt was also identified, however, that seeking to achieve a commercial return through volume manufacturing neither recognised nor provided a satisfactory commercial return for the Company's Patents and IP.\n \nAs a result, AorTech has focused on generating income from Patent and IP related revenue st...