Artimplant AB and SBi sign agreement for Artelon® Resurfacing in the hand and wrist domain
Västra Frölunda, Sweden, December 27, 2007
This is information which Artimplant shall 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 December 27, 2007 at 08:45 AM.
The biomaterials company Artimplant signs licensing agreement with Small Bone Innovations, Inc. (SBi) for all joints in the hand and wrist domain. The license is exclusive and global (except for the Nordic countries) and covers resurfacing with Artelon®, a concept that contributes to regenerating function in joints that have degenerated functionality due to osteoarthritis. Artimplant will receive an up-front payment of USD 500,000 for the license and SBi will absorb all expenses for development and regulatory registration of new Artelon® implants for the hand and wrist. Moreover, the parties have granted each other an option to transfer the ownership of existing product clearances to SBi for an aggregate amount of USD 400,000.
Artimplant will develop at least three new products to in the hand and wrist domain. The first development project will start immediately. The licensing agreement refers to all Resurfacing products for joints in the hand and wrist that have not previously been out-licensed to SBi.
Artimplant receives USD 500,000 for the license. Revenues from product sales will in principle follow earlier agreements with SBi. A transfer price will be invoiced at delivery of finished products to SBi and royalty is due based on SBi’s net sales to its customers.
The Artelon® Resurfacing concept creates the preconditions for the body to heal itself. The thought is pioneering; a minimal resection of the joint afflicted by osteoarthritis creates the preconditions for integration of tissue in the Artelon®-implant, thus creating a new joint surface. The patient regains a functional joint.
”We are excited that SBi continues to explore the market and makes further investments in the Spacer concept, based on its initial and positive market assessment of Artelon®. It makes business sense that SBI’s well trained and focused sales force is provided access to a full product range for all joints in the hand and wrist. We look forward to further developing our cooperation with SBi.” says Artimplant’s CEO, Hans Rosén.
In addition to the license for joints in the hand and wrist, pursuant to reciprocal “call” and “put” options, Artimplant is entitled to transfer to SBi, and SBI is entitled to require Artimplant to transfer the ownership of existing product clearances of Artelon® CMC Spacer, Artelon® CMC Spacer Arthro, Artelon® STT Spacer and Artelon® DRU Spacer to SBi for in aggregate USD 400,000.