Artimplant prolongs its funding agreement regarding costs for trials in USA, recovers previous costs for the trials and requests for arbitration
Artimplant and the two insurance companies involved and the insurance broker have prolonged the funding agreement entered into during the summer of 2012 which purpose is to fund Artimplant’s costs for the trails in USA until a final solution is reached to divide the liability amongst the parties.
Further, the parties have agreed that Artimplant’s costs for the trails incurred before the funding agreement was signed also shall be comprised by the funding agreement which means that Artimplant now will recover SEK 5 million in cash.
As previously has been announced Artimplant is of the opinion that Artimplant has an adequate protection for any costs incurred for the trails in USA although it is unclear to what extent the liability to cover the costs lies with which insurance company and/or the insurance broker. Artimplant’s opinion is further confirmed by the prolonged agreement where Artimplant recovers compensation for trial costs previously incurred.
The insurance companies and the insurance broker have in connection with prolonging the funding agreement taken the final position that they cannot reach a settlement in allocating the responsibility to cover Artimplant’s costs for the trials in USA. All parties have agreed that the outstanding dispute shall be determined in an efficient arbitration procedure. Therefore Artimplant has today requested for arbitration with The Arbitration Institute of the Stockholm Chamber of Commerce.
Västra Frölunda, February 25, 2013
For further information, please contact:
Kjell Thörnbring, CEO
Telephone: +46 703 119 025
Further information is available at www.artimplant.com where you can also subscribe to future press releases; www.artimplant.com/investors-media/subscribe-to-press-releases.html
Artimplant is a biomaterials company focused on solutions to problems in orthopedics. We restore health through the development, production and marketing of degradable implants that regenerate body functions and improve quality of life. Our products, made from Artelon®, meet unmet clinical needs and are marketed in a growing number of therapy areas. Artimplant produces implants for treatment of osteoarthritis in hands and feet as well as shoulder and other soft tissue injuries.
Artimplant is a public company, listed on NASDAQ OMX Stockholm in the Small Cap segment and in the healthcare sector.
This press release contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting on the Company's business, including increased competition; the ability of the Company to expand its operations and to attract and retain qualified professionals; technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.
This is information that Artimplant will make public pursuant to the Swedish Financial Instruments Act and the Swedish Securities Exchange and Clearing Operations Act and/or stock market agreements. Information was made available for publication on February 25, 2013 at 5:25 pm (Swedish time).