Biophan Details Technology License and Investment Agreements with Boston Scientific in SEC Form 8-K/A
|Provisions Include $5 Million Equity Investment by Boston Scientific, Royalties and Milestone Payments for Proprietary Technologies|
“Through use of our proprietary technology, leading medical device manufacturers will have the ability to produce and market medical devices that offer critical advantages of MRI safety and MRI image compatibility. These agreements are an important milestone along that path.”
Biophan Technologies, Inc. (OTCBB: BIPH), a developer of next-generation biomedical technology, further detailed the terms of its technology licensing and equity agreements with leading medical device manufacturer Boston Scientific Corporation (NYSE: BSX) in an SEC Form 8-K/A filed today.
The technology license agreement has a number of provisions, including the granting of various rights to commercially implement a number of Biophan's patented solutions to make implantable medical devices and surgical tools safe and/or image-compatible in Magnetic Resonance Imaging (MRI) systems. The agreement grants Boston Scientific various exclusive and non-exclusive licenses, for certain products, to a number of Biophan's proprietary technologies, plus sublicensing rights for the sale of commercial products that are based on the licensed technologies.
"We believe these agreements with Boston Scientific represent the next significant step toward the creation of medical devices that are MRI-safe and image compatible," said Biophan CEO Michael Weiner. "Through use of our proprietary technology, leading medical device manufacturers will have the ability to produce and market medical devices that offer critical advantages of MRI safety and MRI image compatibility. These agreements are an important milestone along that path."
Under the terms of the agreements, Boston Scientific will pay Biophan an upfront license fee of $750,000, plus annual license maintenance fees. Boston Scientific will also make milestone payments for the launch of commercial products based on the licensed technologies, and Biophan will receive royalties on the sale of products that employ the licensed technologies.
Boston Scientific is also acquiring $5 million of Biophan common stock, priced at a 10% premium over the average of the closing price for the 30 calendar-day period preceding the closing. Funding under both agreements is expected to occur following confirmation of paperwork related to our recent acquisitions.
About Biophan Technologies
Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and image compatible with the magnetic resonance imaging (MRI) environment. The Company develops enabling technologies for implanted medical systems such as pacemakers and interventional surgical devices such as catheters, guidewires, stents, and other implants to allow them to be safely and effectively imaged under MRI. The technology is also being used to create MRI contrast agents, and has expanded to include other applications, such as drug delivery and power systems derived from body heat. Four Biophan technologies include advances in nanotechnology and thin film coatings. Committed to growth through innovation and developmental leadership, Biophan and its licensors now hold a total of 140 U.S. patents, licenses, or applications. This total includes 38 issued U.S. patents, 9 recently-allowed applications that will issue as patents in the near future, and 93 pending applications at various stages of examination at the U.S. Patent and Trademark Office, plus international applications. The patents cover areas including nanotechnology (nanomagnetic particle coatings), radio frequency filters, polymer composites, thermoelectric materials for batteries generating power from body heat, and photonics. Biophan has joint development and licensing agreements with Boston Scientific (NYSE: BSX - News) and NASA's Ames Center for Nanotechnology. Biophan's goal is to make all biomedical devices capable of safely and successfully working with MRI, and delivering other technologies which will improve quality of life. For more information, please visit www.biophan.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this press release may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect what Biophan anticipates, expects, or believes may happen in the future. Biophan's actual results could differ materially from the outcome or circumstance expressed or implied by such forward-looking statements as a result of a variety of factors including, but not limited to: Biophan's ability to develop its technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the ability of Biophan to demonstrate the effectiveness of its technology; the acceptance by the market of Biophan's technology and products incorporating such technology, the ability of Biophan to effectively negotiate and enter into contracts with medical device manufacturers for the licensing of Biophan's technology; competition; the ability of Biophan to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Biophan's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Biophan's periodic filings with the SEC which are incorporated herein by reference. The forward-looking statements contained herein are made only as of the date of this press release, and Biophan undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.