Misonix Enters into $11 Million License, Royalty and Manufacturing Agreement
October 20 2017 - 6:45AM
Misonix, Inc. (Nasdaq:MSON), a provider of minimally invasive
therapeutic ultrasonic medical devices that enhance clinical
outcomes, announced today that it has entered into a license and
exclusive manufacturing agreement with Hunan Xing Hang Rui Kang
Bio-Technologies Co., Ltd., a Chinese corporation, under which
Misonix has licensed certain manufacturing and distribution rights
to its SonaStar product line in The People’s Republic of China
(“PRC”), Hong Kong and Macau in exchange for payments totaling a
minimum of $11 million.
The agreement calls for (i) upfront technology license fees and
stocking orders of $5 million; (ii) minimum royalty payments from
the sale of SonaStar products in the licensed territories of $2
million per calendar year in each of 2019, 2020, and 2021 and (iii)
additional royalty payments based on product sales through August
2027. The Agreement also provides that Misonix will supply SonaStar
products to Hunan Xing Hang Rui Kang Bio-Technologies Co., Ltd. at
agreed prices during the transition period prior to their
commencement of manufacturing, and provides for reimbursement of
technology transfer costs to Misonix of up to $1 million.
Stavros Vizirgianakis, President and Chief Executive Officer of
Misonix, said, “We look forward to working with the team at Hunan
Xing Hang Rui Kang Bio-Technologies Co. to establish our SonaStar
technology throughout The People’s Republic of China, Hong Kong and
Macau. We will be focused on assisting them to effectively and
efficiently manufacture the SonaStar product line once they
complete the required manufacturing facilities. In the meantime, we
will supply them the product they need to begin to establish the
SonaStar product line in these important and fast-growing markets.
This is an important technology that will result in better patient
outcomes with cost-effective treatment modalities.”
Quan Li, Chairman of Hunan Xing Hang Rui Kang Bio-technologies
Co., Ltd., said, “Working with Misonix represents a unique
opportunity to add an important technology to our suite of
products. SonaStar is an advanced technology engineered to provide
powerful and precise ultrasonic aspiration with maximum control and
ease-of-use. We are dedicated to bring these important benefits to
our markets in The People’s Republic of China, Hong Kong and
Macau.”
“We are extremely excited to be partnering with the team at
Hunan Xing Hang Rui Kang Bio-Technologies Company to bring our
SonaStar technology to The People Republic of China,” added Scott
Ludecker, Senior Vice President of Sales and Marketing
with Misonix. “Both organizations share a common commitment to
improving the lives of patients with our therapeutic ultrasonic
surgical technology.”
About MisonixMisonix, Inc. designs, develops,
manufactures and markets therapeutic ultrasonic medical devices.
Misonix's therapeutic ultrasonic platform is the basis for several
innovative medical technologies. Addressing a combined market
estimated in excess of $1.5 billion annually; Misonix's proprietary
ultrasonic medical devices are used in spine surgery, neurosurgery,
orthopedic surgery, wound debridement, cosmetic surgery,
laparoscopic surgery, and other surgical and medical applications.
Additional information is available on the Company's website at
www.misonix.com.
Safe Harbor StatementWith the exception of
historical information contained in this press release, content
herein may contain "forward looking statements" that are made
pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and are subject to uncertainty
and changes in circumstances. Investors are cautioned that
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from the statements
made. These factors include general economic conditions, delays and
risks associated with the performance of contracts, risks
associated with international sales and currency fluctuations,
uncertainties as a result of research and development, acceptable
results from clinical studies, including publication of results and
patient/procedure data with varying levels of statistical
relevancy, risks involved in introducing and marketing new
products, potential acquisitions, consumer and industry acceptance,
litigation and/or court proceedings, including the timing and
monetary requirements of such activities, the timing of finding
strategic partners and implementing such relationships, regulatory
risks including approval of pending and/or contemplated 510(k)
filings, the ability to achieve and maintain profitability in the
Company's business lines, the impact of the pending investigation
by the Department of Justice and Securities Exchange Commission,
and other factors discussed in the Company's Annual Report on Form
10-K for the fiscal year ended June 30, 2017, subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. The Company
disclaims any obligation to update its forward-looking
statements.
Corporate ContactJoe DwyerMisonix,
Inc.631-927-9113jdwyer@misonix.com
Investor ContactJoe DiazLytham
Partners602-889-9700mson@lythampartners.com
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