MiMedx Signs License Agreement with SaluMedica, LLC
TAMPA, Fla., April 3, 2008 /PRNewswire-FirstCall/ -- MiMedx Group, Inc. announced today that it has entered into an exclusive world-wide license with SaluMedica, LLC of Atlanta, GA for its Salubria(R) material for applications as a surgical sheet. The license covers both internal and external applications.
MiMedx' wholly-owned subsidiary, SpineMedica, LLC in Marietta, GA will lead the development of this technology. SpineMedica President Lew Bennett stated, "Initially we will focus on developing the Salubria(R) surgical sheet technology for a spine surgery vessel guard used for anterior spinal surgeries."
Classified as a hydrogel, Salubria(R) contains water in similar proportions to human tissue and can be processed to be similar in its mechanical and physical properties. The organic polymer-based biomaterial is known to be biocompatible. Although it is soft and compliant like human tissue, it has been formulated to be wear resistant and strong, making it potentially suitable for many medical applications.
"This technology opens new doors for the MiMedx Group and SpineMedica," said CEO Tom D'Alonzo. "The potential for this technology to be used in the prevention of scarring, and as an anti-adhesive or in tissue repair could be significant."
In exchange for the exclusive, worldwide, perpetual license to manufacture use and sell SaluMedica's "surgical sheet" technology for application anywhere in the body, MiMedx agreed to issue to SaluMedica promptly after closing (March 31, 2008) 400,000 shares of restricted common stock. In addition to the shares to be issued in connection with closing, SaluMedica is eligible to receive up to an aggregate additional 600,000 shares of restricted common stock if certain sales and revenue milestones are achieved not later than June 30, 2013.
About MiMedx Group, Inc.
MiMedx Group, Inc. is the parent company for MiMedx, Inc., a development- stage Florida corporation founded in 2006, with technology focusing on biomaterials for soft tissue repair, such as tendons, ligaments and cartilage, as well as other biomaterial-based products for other medical applications. MiMedx, Inc., based in Tampa, Florida, holds an exclusive, worldwide license from the Shriner's Hospital for Children and the University of South Florida Research Foundation for certain nordihydroguaiaretic acid (NDGA) technology. MiMedx is targeting this proprietary technology for a number of diverse medical applications.
MiMedx, Inc. also has a wholly-owned subsidiary, SpineMedica, LLC, based in Atlanta, Georgia, led by an industry veteran, R. Lewis Bennett. SpineMedica, a Florida limited liability company, is a development-stage company focusing on the commercialization of medical device technologies for application in the spine and chronic back pain. SpineMedica's goal is to acquire promising technologies in this field through licensing arrangements and develop and commercialize such technologies.
For further information, please refer to the Current Report on Form 8-K to be filed by MiMedx Group, Inc. with the SEC as soon as practicable, which will be accessible at: http://www.sec.gov/edgar/searchedgar/companysearch.html. You may also contact Matthew J. Miller, Executive Vice President of MiMedx Group, at 813-866-0000, for additional information.
About SaluMedica, LLC
A biotech company, SaluMedica develops medical devices based on its proprietary biomaterial, Salubria(R). SaluMedica's team of engineers, physicians and industry specialists is dedicated to applying Salubria(R) biomaterial to fill the long-standing need for new medical products replacing damaged soft tissue.
Forward-Looking Statements: This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "intends," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. For example, MiMedx and SpineMedica may be unable to continue their efforts on particular products due to future laboratory results. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
CONTACT: Matthew J. Miller, Executive Vice President of MiMedx Group,
Web site: http://www.mimedx.com/