AorTech signs licensing agreement for medical device components

8 January 2009

AorTech International plc (AIM: AOR) the biomaterials and medical device development company, has announced a technology license and material supply agreement with a leading manufacturer of a life-sustaining circulatory support system.

This agreement calls for the use of AorTech-manufactured Elast-Eon components in the device. The license structure includes upfront and volume-related payments in addition to provisions for polymer and component sales.

As the first of several combined polymer license and component supply agreements, AorTech has now entered into a phase of its commercial development where the supply of specialized Elast-Eon components will become the norm.

In a number of pending licenses, the customer has chosen to leverage AorTech’s expertise with certain polymer processing techniques to their advantage. These types of agreements have significantly higher revenue potential than the material licensing and supply agreements that helped launch AorTech. Industry consensus is that the heart-assist device market could reach between $8 billion and $10 billion worldwide within the coming decade.

Frank Maguire, AorTech Chief Executive Officer said, “Elast-Eon’s application to the long-term circulatory support device is a natural extension of its two and a half years of successful clinical experience in long-term cardiovascular implants requiring high fatigue resistance, and best-in-class biostability.

"With regulatory approvals in the US, Canada, Europe, Israel, Japan and Australia, and clinical use approaching one million patients, Elast-Eon continues to be selected for the most demanding medical device applications. This agreement is also significant in that it represents AorTech’s first large scale component supply agreement. Shipments are expected to commence in 1st quarter of 2009.”

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