|
|
|
|
For Immediate Release: 20 August 2007 The Medical House PLC Disposal of Needle-Free Insulin Injector Business (the “Disposal”) The Medical House PLC (“TMH” or the “Company”), (AIM:MLH) the drug delivery specialist, is pleased to announce that it has concluded the sale of its SQ-PEN needle-free insulin injector business to Diabetes Management International B.V. ( “DMI”) for an initial consideration of £750,000 in cash. An additional payment will be made in respect of all stocks of SQ-PEN materials held by TMH amounting to approximately £60,000.
TMH’s sales of SQ-PEN products in the 12 months to 30 June 2007 amounted to £90,000. This insulin injector business involved the supply of product to private individuals, which is a very time consuming process and an area which is outside the Company’s core activity. The Disposal now enables TMH to concentrate all of its resources on growing its drug delivery systems business which involves developing, licensing and supplying pharmaceutical companies with bespoke self-injection technologies and devices.
Under the terms of the Disposal agreement, TMH grants DMI an exclusive worldwide licence to use the SQ-PEN technology for the delivery of insulin to humans. TMH will also provide ongoing assistance with manufacturing the SQ-PEN for a period of up to 12 months. A further payment of an additional £50,000 will be made to TMH at the end of that 12-month period.
In addition to the licence, the consideration payable also covers the tooling necessary to manufacture the SQ-PEN products; TMH will retain the rights to enable it to supply the technology to any of its customers for any purpose other than the delivery of insulin. The net book value of this tooling is £356,000.
Ian Townsend, Chairman, The Medical House PLC, said:
“We are delighted that the Disposal releases valuable resources which can be used to build on the successes of our drug delivery division.
These needle-free insulin injectors were the first drug delivery systems designed and manufactured by TMH and were instrumental in gaining a profile in the global drug delivery market. However, our business model is now clearly focused on developing devices which we license to pharmaceutical company partners who then combine our technologies with their drug products to create competitive advantages. We continue to make progress on all aspects of this model and the level of activity on all fronts in the year just started is encouraging.” -Ends- For further information: The Medical House PLC Buchanan Communications Nomura Code Securities Limited
Notes to Editors: There is a growing trend in the pharmaceutical industry towards the use of needle-based disposable autoinjectors for self-injection. The “ASI” is TMH’s first autoinjector system following the development of a range of needle-free devices which are already successfully in use. TMH’s ASI autoinjector technology allows injections to be easily and safely undertaken by patients themselves or by other non-clinicians such as family members and colleagues and are applicable to both elective therapies and emergency situations.
In December 2006, TMH announced that it had entered into a development, licensing and supply agreement for the ASI with a leading global pharmaceutical partner, for delivery of an, as-yet, undisclosed drug. TMH’s revenues from this agreement, consisting of development, supply and technology access fees, are projected to be in the region of £27m over an initial five year period, with technology access fees comprising approximately £18m of these revenues.
TMH signed its first deal for the ASI in June 2006 with Martindale Products and Specials, part of Cardinal Health Inc, in an initial five-year contract to supply the ASI system for use with an, as-yet, undisclosed pharmaceutical product, in the United Kingdom. The combined product is to incorporate TMH’s ASI and Martindale’s pre-filled syringe,. The agreement has projected revenues for TMH of £3m over an initial supply period of 5 years.
In December 2005, TMH announced an agreement with a European Government Agency to develop a disposable autoinjector for emergency administration of specific pharmaceutical compounds, based on TMH’s ASI autoinjector. Within this project, TMH’s client is making the required capital investment and covering the costs of design and development. In March 2007, it was announced that TMH had been commissioned by this Agency to enter into a second phase of development within the project, which involves TMH developing and manufacturing devices, according to defined operational and functional requirements, for technical assessment, over an anticipated 12 months project duration. Within the second phase of the project, TMH will receive up to £1m, subject to achieving agreed milestones, in relation to the cost of the project including associated design and development activities.
In September 2004, TMH signed an agreement with Serono to develop and supply a new needle-free injector for use with its human growth hormone. This licence and supply agreement is for an initial period of 5 years with projected revenues for TMH of £4.3m.
In February 2005, TMH announced a 10-year agreement which it has signed with BioPartners GmbH, to supply its needle-free system for the delivery of BioPartners’ human growth hormone products.
Historically, the majority of the group’s turnover has come from its orthopaedic company, Eurocut Limited, which designs and manufactures instruments and systems used in surgical procedures for many of the world’s leading orthopaedic companies. With the increasing significance of its drug delivery division, the group is considering its options for Eurocut. END |
Site map
Privacy Statement | Copyright 2007 - The Medical House PLC. All rights reserved. | Terms of use | Top of page The Medical House PLC, 199 Newhall Road, Attercliffe, Sheffield,
S9 2QJ, UK. |
