Healthcare Industry News: HSMN NewsFeed
News Release - October 26, 2017
Advanced Medical Solutions Group and Organogenesis Inc. Enter into Patent Out-licensing AgreementOrganogenesis to Obtain Immediate Access to Patent and License in U.S.
AMS to recognize $2.5 million in 2017; annual royalty on net sales until 2026
WINSFORD, England and CANTON, Mass., Oct. 26, 2017 -- (Healthcare Sales & Marketing Network) -- Advanced Medical Solutions Group plc (AIM: AMS.L), the surgical and advanced wound care specialist company, and Organogenesis Inc., a commercial leader in regenerative medicine focused on advanced wound care and surgical biologics, today announced the two companies have entered into an out-licensing agreement on a U.S. patent ("Patent") for a collagen-based wound dressing containing Polyhexamethylene Biguanide ("PHMB") ("Licensed Product").
Under the terms of the agreement, Organogenesis has been granted an exclusive license in the United States to the Patent. In exchange for this, AMS will receive a minimum payment of $2.5 million, which will be recognized in 2017, and a minimum royalty revenue of $1 million for each of the financial years ending 31 December 2018 and 2019, as part of an ongoing royalty that will be payable to AMS on the net sales of the Licensed Product for the life of the Patent. The Patent is due to expire in October 2026.
Chris Meredith, Chief Executive Officer of Advanced Medical Solutions, said: "We are delighted to sign this agreement with Organogenesis, a commercial leader in regenerative medicine, focused in the areas of bio-active wound healing and soft tissue regeneration. The Group's ability to out-license our patent technologies is another endorsement of the quality of our innovation and we are confident that our partner will be able to use the AMS patent in order to help patients across the US."
Gary S. Gillheeney, Sr., President and CEO of Organogenesis Inc., said: "We are very pleased to secure an exclusive license to this patent in the United States. This is an important agreement for Organogenesis that underscores our commitment to offering a comprehensive portfolio of products that addresses patient needs across the continuum of care."
PHMB is an antimicrobial which is effective against several bacteria including Methicillin-resistant Staphylococcus aureus (MRSA) and Escherichia coli (E. coli). AMS's PHMB foam was approved for marketing in Europe in 2016 and subsequently this year in the US.
For further information, please visit www.admedsol.com or contact:
Advanced Medical Solutions Group plc About Advanced Medical Solutions Group plc – see www.admedsol.com
AMS is a world-leading independent developer and manufacturer of innovative and technologically advanced products for the global surgical, wound care and wound closure markets, focused on quality outcomes for patients and value for payors. AMS has a wide range of products that include silver alginates, alginates, foams, tissue adhesives, sutures and haemostats, which it markets under its brands; ActivHeal®, LiquiBand® and RESORBA® as well as supplying under white label.
AMS's products, manufactured out of two sites in the UK, one in the Netherlands, two in Germany and one in the Czech Republic, are sold in more than 75 countries via a network of multinational or regional partners and distributors, as well as via AMS's own direct sales forces in the UK, Germany, the Czech Republic and Russia. Established in 1991, the Group has approximately 600 employees. For more information, please see www.admedsol.com.
Originally founded as a spin-off from technology developed at MIT in 1985, Massachusetts-based Organogenesis Inc. offers a portfolio of bioactive and acellular biomaterials products in advanced wound care and surgical biologics, including orthopedics and spine. Organogenesis's versatile portfolio is designed to treat a variety of patients with repair and regenerative needs. For more information, visit www.organogenesis.com.
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