Protein Polymer Technologies Completes License Agreement with Surgica Corporation
News Dec 21, 2005
Protein Polymer Technologies, Inc. has announced that it has entered into an exclusive, worldwide License Agreement with Surgica Corporation through which PPTI has acquired the rights to Surgica’s technology and products.
This license arrangement is completed pursuant to the asset purchase option agreement between the two companies previously announced.
Under the terms of the agreement, PPTI will receive the exclusive rights to develop and commercialize Surgica’s three FDA-cleared polyvinyl alcohol (PVA) based embolization products – PVA Plus™, MicroStat™ and MaxiStat™ and one additional product under development, Blocker™.
PPTI will assume up to approximately $650,000 of certain Surgica liabilities, cash payments of up to approximately $400,000 against certain other Surgica liabilities and a royalty to Surgica of 25 percent of net profits on revenues generated by the sale of the Surgica products.
"We are pleased that this deal has been completed. Execution of this license agreement is a key event for PPTI, and is one more step in continuing to strengthen and expand our pipeline," said William N. Plamondon III, Chief Executive Officer of PPTI.
"As we move forward, we plan to continue to be aggressive in the licensing and collaboration front in support of our strategic priority of evolving our research and development governance."
As anticipated, PPTI also completed the Supply and Services Agreement which provides for the manufacture of product by Surgica and the provision of services to PPTI including further product development, in exchange for operating payments to Surgica.
Manufactured according to a proprietary process, Surgica’s patented PVA foam embolization products include both spherical and standard particle forms.
Advancing standard PVA technology that has been safely used in humans for over 30 years, Surgica’s products have fluid suspension properties intended to maximize product performance.
PPTI and Surgica have developed three sterile convenience kits packaged with Surgica’s PVA products designed to improve ease of use for physicians and overall procedure efficiency.
PPTI anticipates introducing these convenience kits in late March 2006 at the Society of Interventional Radiology Annual Scientific Meeting.
Currently, Surgica’s products are cleared for use in the endovascular management of arteriovenous malformations and neoplastic lesions when presurgical devascularization is desirable.
PPTI plans to submit a 510(k) application to the FDA to expand the labeled indications for Surgica’s products to include treatment of uterine fibroids, liver cancer and certain other applications.
Approximately 70 percent of the projected 275,000 hysterectomies performed to treat uterine fibroids in 2005 would benefit from this procedure.