Biophan Technologies Announces Formation of Biophan Business Development Group to Accelerate Licensing Activity; Group Formed to Capitalize on Licensing Opportunities for Commercializing Biophan Patent Portfolio
The Biophan Business Development Group will lead the next generation of the Company's business and revenue growth initiatives through its central business model of licensing proprietary, needed biomedical technology solutions to major medical device manufacturers and other customers worldwide. With an intellectual property portfolio currently comprising 144 patents, licenses, or applications, Biophan is a leader in several areas of nanotechnology and other advanced biomedical solutions, including Magnetic Resonance Imaging (MRI) safety and visualization, drug-elution systems and other multi-billion-dollar market segments.
“Biophan's ability to secure and access these significant sources of financing gives us ample resources to reach the next levels of technological and business expansion”
John Lanzafame, President of the Nanolution drug delivery division, will also serve as Corporate Vice President of the newly established group. Mr. Lanzafame's responsibilities include sales, marketing, and business development activities for all of Biophan. He is in the process of recruiting industry professionals to expand the Biophan sales capabilities. The group has been established to accelerate the Company's ability to carry out its primary mission to develop and commercially exploit technologies for improving the performance of biomedical devices and pharmaceutical compounds, leading to a corresponding competitive advantage by the third-party companies that license Biophan's solutions. The formation of the Group comes in the wake of Biophan's milestone licensing agreement with Boston Scientific (NYSE: BSX), one of the world's largest manufacturers of medical devices.
"We established the Biophan Business Development Group following the Company's successful attainment of a number of critical strategic goals, and in recognition that we had achieved decisive growth steps enabling us to progress from an early-stage technology development Company toward the next phase that includes the generation of significant revenues and continued shareholder value," said Michael Weiner, CEO of Biophan.
Biophan cancelled a previous financing arrangement and entered a new agreement with SBI Brightline that provides the $30 million fixed price stock financing for up to 10,000,000 shares at an average price of $3 per share, if the Company elects to accept the full facility, with a range from $2 a share to $4 a share, which must be taken in sequential tranches of 1 million shares each. There are no warrants or fees associated with this SBI Brightline agreement. The financing requires the shares to be registered under the Securities Act of 1933 for resale by Brightline.
Biophan's recently executed equity agreement with a subsidiary of leading medical device manufacturer Boston Scientific consists of the purchase of Biophan common stock totaling $5 million, priced at a 10% premium over the average of the closing price for the 30 calendar-day period prior to the closing, which resulted in a purchase price of $3.02 per share. Its technology license agreement with Boston Scientific included an upfront payment of $750,000 and annual maintenance fees, in addition to royalties of 3-5%, and milestone payments up to several million dollars per product category readied for market.
In addition, Biophan recently secured a favorable line of credit facility of up to $2 million from Biomed Solutions, LLC, an affiliate.
"Biophan's ability to secure and access these significant sources of financing gives us ample resources to reach the next levels of technological and business expansion," said Mr. Weiner. "These new sources of capital will help us further enhance Biophan's standing in the marketplace at a time when our unique nanotechnology and other proprietary solutions have already demonstrated their effectiveness. The need for our solutions within several multi-billion-dollar biomedical segments, has been validated repeatedly by several independent sources throughout both the scientific and medical community and, of course, the industry. Biophan's recently closed technology licensing and equity agreement with Boston Scientific was an important milestone for Biophan that demonstrated the viability of both our technology and the business strategy we established and to which we've successfully adhered throughout our Company's growth."
Biophan intends to use the new capital resources to fund several additional high-growth strategic initiatives, including potential valuable technology acquisitions and the expansion of business operations that has accompanied the continued execution of its business plan.
Biophan is aggressively pursuing several lines of internal research and development, and is sourcing various leading-edge providers of related technologies for license. Among Biophan's newest initiatives is the entry into the fast-growing field of medical devices to assist cardiac function. The Company is currently reviewing several cardiovascular technologies which it feels has potential for exclusive licensing in, and subsequent product development and licensing out.
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 144 U.S. patents, licenses, or applications. This total includes 41 issued U.S. patents, 9 recently-allowed applications that will issue as patents in the near future, and 94 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 - 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.