Oxonica plc, a leading international nanomaterials group, today announces that it has signed a strategic agreement relating to its Nanoplex(TM) technology with BD (Becton, Dickinson and Company), a leading global medical technology company headquartered in New Jersey, USA.
This agreement follows on from the licence agreement signed with BD in August 2006 and subsequent technology development agreements and is in line with the Oxonica Board's strategy announced on 17th March 2008, when it appointed ThinkPanmure to evaluate strategic alternatives for the diagnostics business. Under the terms of the assignment and licence agreement, BD will pay Oxonica a total of up to US$ 7 million. Of that, US$ 3.5 million is payable on signing the agreement in exchange for the assignment to BD of the patents covering Oxonica's Nanoplex™ technology, related know-how and the Nanoplex™ trademark. A further $3.5 million is payable on Oxonica completing certain technical transfer milestones. In addition, BD will make payments to Oxonica on sales of BD products covered by the Nanoplex™ patents, such payments will replace the original license agreement.
As a result of this transaction, BD will assume the responsibility and costs associated with prosecuting the patent portfolio and will also take responsibility for the manufacture of the Nanoplex™ tags for its own requirements. This will allow Oxonica to achieve a significant reduction in operating expenses.
Oxonica has been granted a royalty free, exclusive licence to continue to use the technology in the fields of industrial and homeland security and to continue to evaluate opportunities in in vivo diagnostics, agriculture (excluding veterinary) and fine chemicals.
Commenting on today's announcement, Richard Farleigh, Chairman, said:
"The announcement of this strategic agreement with BD is a major step towards achieving Oxonica's strategy. We have developed the technology to the point where BD can commercialise the technology. Oxonica can now further focus its resources on its major growth opportunities including security."