MISSISSAUGA, ONTARIO--(Marketwire - October 22, 2009) - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSX VENTURE: COV), an advanced medical products company, announced that they have entered into a manufacturing agreement with Amsino International Inc. a business unit of Amsino Medical Group, a leading global manufacture of single use medical devices. The successful completion of this manufacturing agreement confirms the commitment of the two companies to the global strategic marketing alliance previously announced on April 24, 2009.
The manufacturing agreement provides that:
- Amsino will establish a high-volume manufacturing facility for customers who need to have their medical devices coated with Covalon's Covacoat™.
- Amsino will purchase from Covalon a custom-designed, new-generation Covacoat™ machine.
- Covalon and Amsino will share revenues from joint marketing activities directed at medical device companies.
Covalon and Amsino will attend Medica 2009 in Germany in mid-November in order to identify joint business opportunities. Medica is the world's largest Forum for in-patient and out-patient medicine with over 4,300 exhibitors and 135,000 visitors from over 100 countries.
William Jackson, Covalon Chief Business Officer and Co-Founder stated, "Covalon's entering into our follow-up manufacturing agreement with Amsino is a significant milestone for us. It allows Covalon to concentrate its energies and financial resources on what it does best - researching and developing world-class medical technologies. It allows Amsino to concentrate on what it does best - manufacturing world-class medical technologies. Just as significant, both of us are in the process of co-marketing to major medical companies who can take advantage of the best medical device coating in the world - Covalon's Covacoat™ technology."
Dr. Richard Lee, Chairman and CEO of Amsino Medical Group stated, "It will be good to have this technology and coating capacity available to the many large device companies Amsino currently deals with as well as the many future customers we are talking to. Amsino and Covalon are working extremely well together and we are optimistic of future success from our joint efforts."
Dr. Frank DiCosmo, Covalon President, CEO and Co-Founder stated, "It has been immensely satisfying to see Covalon's original coating technology evolve from a lab scale system into a pilot system for small volumes and now into a well-engineered, sophisticated and automated system for large scale manufacturing. Amsino's state of the art facilities in the United States and China are the perfect platform for the commercialization of the Covacoat™ technology."
Established in 1993 and headquartered in Pomona, California, Amsino Medical Group is a vertically integrated company providing clinically superior products and reliable manufacturing services to the international medical device community. Clients include top tier medical device Original Equipment Manufacturers from the United States, Europe and Japan. Amsino's product and service portfolio includes infusion products and access devices, blood collection and transfusion devices, anesthesia and surgical products, urological products, enteral feeding and irrigation products, respiratory therapy products, patient care products, and a full-service contract manufacturing business.
Covalon Technologies Ltd. is an advanced medical products company that develops, patents and commercializes therapeutic biomaterials for wound care and surgical applications and coatings. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that are applied to medical devices to treat many critical conditions. A variety of applications for these technologies have been identified and specific products have been developed. The products offer features and benefits providing solutions to many of the problems caused by current devices and their material properties which are used by most medical device manufacturers and suppliers. The problems include infection, poor biocompatibility and microbial attachment.
This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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