Biophan Details Recent Key Business and Technology Achievements in Corporate Strategic Overview for First Half of 2005; Mid-Year Review Outlines Milestone Acquisitions, Technology Licensing Agreements and Other Progress
"Our achievements so far this year have been pivotal in Biophan's strategic mission to provide significant medical products and advances to capitalize on several multi-billion-dollar markets around the world," said Michael Weiner, Biophan CEO. "One of the highlights of the last two calendar quarters was our acquisition of AMRIS and the concurrent establishment of our Biophan Europe division, closing of equity and licensing agreements with Boston Scientific, and the continued expansion of our intellectual property portfolio. These events have resulted in increased shareholder value and stronger support from the investment community."
“It strengthened Biophan through the addition of key AMRIS personnel, as well as by providing the Company with unique access to the European research community, where some of the most exciting research into MRI is being conducted.”
Biophan's mission is to develop technologies that offer our customers competitive advantage. Our primary technology solutions are intended to enable a new generation of implanted medical devices and surgical tools that work safely and effectively with Magnetic Resonance Imaging (MRI) systems. Due to safety and image compatibility problems, millions of people with pacemakers, neurostimulators and other devices cannot be exposed to the MRI environment. We are also developing technology that will enable devices that are safe, such as stents, to be internally imageable under MRI, where today an invasive catheter procedure is needed. Furthermore, the company is pursuing concepts for advances in drug delivery technology.
Biophan also develops devices to address important needs in the biomedical marketplace, including a line of ultra-precise, MRI-safe motors for drug-delivery and other applications, and biothermal power sources that convert body heat into electricity to power medical devices such as pacemakers. The Company has recently launched a new initiative to develop cardiovascular devices for diagnostic and therapeutic applications in heart disease. These will be licensed or sold through partners with existing distribution, and not sold directly by Biophan.
The Company's milestones for 2005 thus far include the following achievements:
Licensing and Equity Agreements
-- Execution of licensing and equity agreements in June with leading medical device manufacturer Boston Scientific. Under the agreement, Boston Scientific will license multiple Biophan patents related to MRI safety and image compatibility which, along with a concurrent equity agreement, results in $5.75 million in equity investment and upfront licensing payments. Details in the license agreement, as disclosed in the 10-Q for the first quarter 2005, provide Boston Scientific with the right to use Biophan's MRI safety and image compatibility technology and other technologies in a broad range of exclusive and non-exclusive product areas at royalty rates of 3% to 5%. The exclusive product area includes vascular implants and the non-exclusive product area covers a broad array of products including guidewires, catheters, pacemakers, defibrillators, neurostimulators and others. Boston Scientific has the right to sub-license the exclusive product areas to third parties, with Biophan and Boston Scientific to share all proceeds from these parties. The agreement also provides for milestone payments to Biophan for specific product areas.
-- In May, Biophan completed the acquisition of AMRIS GmbH, a company in Germany that develops solutions to create MRI-compatible stents, vena cava filters and other devices. (To see an example of these technologies click here for stents: http://www.biophan.com/presentations/MRIImage.ppt and for vena cava filters click here: http://www.biophan.com/presentations/042605VCF.ppt). The acquisition dramatically increases Biophan's access to MRI equipment and expert personnel, as well as expanding its intellectual property portfolio through the addition of 15 patents related to MRI safety and image-compatibility. Following the acquisition, the Company designated and renamed it Biophan Europe. The group is leading the Company's research and business initiatives in Europe. "The acquisition of AMRIS and its establishment as the Company's Biophan Europe division was one of the year's most important achievements," said Mr. Weiner. "It strengthened Biophan through the addition of key AMRIS personnel, as well as by providing the Company with unique access to the European research community, where some of the most exciting research into MRI is being conducted." Biophan Europe is a leader in development of technologies that make vascular stents and other devices imageable under MRI, and in the emerging field of Interventional MRI which uses the safer imaging modality of MRI to conduct advanced, minimally invasive surgical procedures.
Listing on a Major Exchange
-- With the completion of the Boston Scientific agreements and the subsequent payment to Biophan of $5.75 million, Biophan is now preparing to file for listing on a major exchange. It is anticipated that the listing will be completed sometime in the second half of 2005.
Intellectual Property Expansion
-- In the first half of calendar 2005, Biophan added 38 patents, licenses or applications to reach a total of 140. This intellectual property further reinforced the Company's strategic goal to capitalize on its proprietary nanotechnology and other cutting-edge solutions to make implantable medical devices and surgical tools safe and image-compatible with Magnetic Resonance Imaging (MRI) systems. The Company continued to strengthen an extensive patent portfolio designed to provide the maximum protection of its marketable technology solutions. The new technologies and patents cover nanotechnology-based implantable power sources that convert body heat to electricity, nanomagnetic device coatings, specialized dielectric materials, photonic diagnostics and therapies, and other innovations. Additionally, Biophan and technology partner, New Scale Technologies, announce the newly allowed fundamental patent on tiny, nano-precise MRI-compatible SQUIGGLE motor. The U.S. Patent and Trademark Office issued the fundamental patent for this revolutionary linear motor made of piezoelectric ceramics and other non-magnetic materials, which achieves nanometer precision.
Industry Recognition, Press and Presentations
-- Biophan CEO Michael Weiner was featured on World Talk Radio's "Science and Society" program, in an online audio interview aired in June with host Dr. David Lemberg that focused on Biophan's groundbreaking scientific advances in several multi-billion-dollar biomedical markets.
-- Biophan and New Scale Technologies announce that the SQUIGGLE motor is named to EE Times' Top Ten "Most Significant" Products List in June. This novel linear motor has nanometer precision and is made of non-magnetic materials, making it safe and compatible for use with MRI for implantable and robotic applications.
-- In April, Biophan CEO Michael Weiner was an expert panelist on the Nanotechnology Patents Panel at NanoScience Exchange Conference, in Santa Clara, California, entitled "Patents: Who's Staked the Valuable Turf?" The two-hour discussion covered the potential impacts and opportunities of nanotechnology on the multi-billion-dollar healthcare market.
-- Biophan CEO Michael Weiner was an expert commentator at the World Nano-Economic Congress Ireland in Dublin. Mr. Weiner was interviewed twice on CNBC Frankfurt by Sylvia Whadwa, and appeared on CBS MarketWatch, CBS News, Chicago, WGN cable television, and many other forums and television and radio shows.
-- In February, Biophan was included in BusinessWeek magazine's cover story about the latest innovations in nanotechnology. The cover story, entitled "The Business of Nanotech," describes the progression of nanotechnology from the laboratories to a burgeoning marketplace involving key industries, including healthcare, automotive, energy, computers and semiconductors, advanced consumer materials, and many others. In the BusinessWeek article, Biophan is listed as one of the seven nanotechnology players in the healthcare sector along with General Electric, Johnson & Johnson, NASA, and others.
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 technologies that enable implanted medical systems such as pacemakers, interventional surgical devices such as catheters and guidewires, and devices such as stents to be safely and effectively imaged under MRI. Biophan is developing these same technologies to provide new MRI contrast agents. Other applications include 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 142 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 95 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), medical device designs, 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) 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.