MISSISSAUGA, ONTARIO--(MARKET WIRE)--May 21, 2008 -- Covalon Technologies Ltd. (the “Corporation” or “Covalon”) (CDNX:COV.V - News) is pleased to announce that it has entered into a Development Agreement for the application of its proprietary antimicrobial coating. The new Development Agreement will be on Percutaneous Urinary Catheters. Covalon and its partner have agreed upon a series of development milestones for which Covalon will be compensated. The milestones are over 4 months. Covalon will provide ongoing coating services to its partner at the completion of the development program. Due to confidentiality and market considerations no details on the product and the partner will be disclosed until the product is launched. The Development Agreement is to begin immediately and Covalon has received a purchase order for the first milestone.
Indwelling catheters are associated with very serious infections such as catheter associated urinary tract infection (CAUTI) and catheter-related bloodstream infection (CR-BSI). Central Venous Catheters (CVC) and urological catheters are the most susceptible to bacterial growth causing infection; each year 200,000 CR BSI are caused by CVCs in U.S. hospitals. Together, these two categories of devices account for about 50% of total hospital infections. Antimicrobial coatings could be an effective solution to this growing concern. Furthermore, blood-contacting medical devices such as peripherally inserted central catheters (PICC) and CVC, etc. are susceptible to vascular access-related infections and blood-clotting. Blood clots on the surface of devices raise significant concerns for stroke, heart attack, pulmonary embolism and conditions related to impaired blood flow. Prolonged hospital stay, morbidity or mortality and serious economical consequences are a result of infections and blood-clotting-related events caused by a variety of vascular access devices.
Covalon’s antimicrobial and low-thrombogenic proprietary coating can be applied to a wide variety of in-dwelling, blood contacting devices for reducing the incidence of hospital acquired infection as well as reducing thrombogenicity. Effective antimicrobial and low-thrombogenic coated catheters may reduce infection and thrombus formation thus improving patient outcome. Antimicrobial CVC are expected to experience a growth rate of approximately 5-fold greater than that of un-coated CVC. It is estimated that by 2009, sixty-nine percent (69%) of all CVC used will be antimicrobial (Frost and Sullivan, U.S. Antimicrobial Devices Markets, 2003). Hospital-acquired infections affect approximately 2 million people in the United States each year, and cost over $11 billion to the healthcare system (Frost and Sullivan, U.S. Antimicrobial Coating Markets, 2006). The total antimicrobial catheters market is projected to attain revenues of US $ 375 million by 2009 (Frost and Sullivan 2006).
Covalon recently announced that its antimicrobial silver coating on Foley catheters, sold by Medline Industries Inc. (U.S.A.), eliminated the incidence of hospital acquired catheter-associated urinary tract infections (“CAUTI”) during a six-month study at a rehabilitation hospital in northern Arkansas (U.S.A.). The study by St. Vincent Rehabilitation Hospital in Sherwood, Arkansas, comparing infection rates using uncoated Foley catheters and Foley catheters coated with Covalon’s antimicrobial ionic silver coating, was recently published in the April issue of the Society of Urological Nurses and Associates.
Beginning October 1, 2008, the Centers for Medicare & Medicaid Services (U.S.A.) will cease reimbursement for the care and treatment of CAUTI acquired during a hospital stay. Consequently, in the interest of reducing costs through prevention of CAUTI, there would be additional incentive to use silver-coated catheters, which have been shown to significantly reduce the incidences of urinary tract infections associated with the use of uncoated catheters. Covalon continues to be in discussions with a number of medical device companies that are responding to this increase in demand for antimicrobial coatings on devices.
About Covalon Technologies Ltd.:
Covalon Technologies Ltd. researches and develops advanced medical products initially targeted at wound care and surgical applications and coatings. Covalon’s patented technology utilizes advanced therapeutic biomaterials polymer chemistry and surface coatings to create a range of time-release drug delivery platforms that are applied to many 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.
Additional information can be found at www.covalon.com.
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Contact:
Contacts: Covalon Technologies Ltd. Frank DiCosmo, Ph.D. President & CEO (905) 568-8400
Covalon Technologies Ltd. Francis K. Lindayen, C.A. CFO (905) 568-8400 (905) 568-5200 (FAX) Website: http://www.covalon.com
Source: Covalon Technologies Ltd.
