MacroPore Biosurgery Enters Agreement with Senko Medical for Thin Film Distribution Rights in Japan

Deal includes additional upside through minimum purchase requirements and royalties

20-Jul-2004

MacroPore Biosurgery, Inc. announced that it has granted Senko Medical Trading Co. (Senko) exclusive sales and distribution rights to the thin film product line, including SurgiWrap(TM) and CardioWrap(TM), in Japan.

In return for these rights, MacroPore Biosurgery will receive from Senko up to $3.0 million in payments, which includes an upfront $1.5 million license fee, $1.25 million upon submission of a regulatory application to the Japanese Ministry of Health, Labour and Welfare (MHLW), and $250,000 upon product approval by MHLW. In addition, the agreement represents potential upside for MacroPore Biosurgery in revenues from minimum purchase requirements and royalties on Senko's gross revenues for a three year-period following initiation of commercialization of the products in Japan, which potentially represents $9.0 to $10.0 million in revenue to MacroPore Biosurgery over that term.

"The Senko team looks forward to having MacroPore Biosurgery as our partner in Japan and to introducing the thin film family of products to the Japanese market," said Mr. Tetsuo Sasaki, President of Senko. "We will make every effort to assure success for both companies."

"We are pleased to establish Senko, one of Japan's leading medical product distributors, as our distribution partner in Japan, which represents the second largest medical market in the world," said Seijiro Shirahama, Vice President, Asia Pacific at MacroPore Biosurgery. "Because of their broad channels of distribution and enthusiasm for these products, we are very fortunate to have the distribution of our thin film products in their capable hands."

MAST Biosurgery AG (MAST), who purchased the non-Japanese thin film business from MacroPore Biosurgery in May 2004, continues to hold an option to acquire the rights to the thin film product line for the Japanese market from MacroPore Biosurgery. If MAST should exercise the option, they would have to make a material payment to MacroPore Biosurgery and then the two companies would share in MAST's gross profits and royalties from Senko for a three-year period following initiation of commercialization of the products in Japan. MacroPore Biosurgery continues to hold an exclusive worldwide license for bioresorbable thin films for the spinal market and a perpetual nonexclusive worldwide license to bioresorbable thin films in connection with regenerative cell technology.

https://www.bionity.com/en/news/38587/macropore-biosurgery-enters-agreement-with-senko-medical-for-thin-film-distribution-rights-in-japan.html