Swedish medical device company Bactiguard has entered into an exclusive global license with Warsaw, Indiana-based medical device company Zimmer Biomet. The agreement calls for a $3 million payment to Bactiguard at signing plus $2 million in additional payments contingent on U.S. regulatory clearances and post-commercialization royalties on net sales.
Stockholm, Sweden-based Bactiguard is known for its trademarked coating which helps prevent bacterial adhesion and biofilm formation on a variety of medical devices including urinary catheters, endotracheal tubes, and central venous catheters. Furthermore, Bactiguard’s products are designed to decrease antibiotic use and thus the development of antibiotic resistant bacteria.
Zimmer Biomet, which has operations in 25 countries and sells products into more than 100, is on a mission to “alleviate pain and improve the quality of life for people around the world” by supplying products and services designed to help treat patients suffering from musculoskeletal injuries and disorders.
The licensing agreement is aimed at using Bactiguard’s innovative infection prevention technologies on Zimmer Biomet’s orthopedic trauma implants.
Bactiguard’s technology coats implants with a thin coat of noble metal alloy that has a galvanic effect. The galvanic effect creates a small electrical current which repels microbes and reduces the risk of infection.
Orthopedic trauma implants with Bactiguard’s technology received a CE mark in December 2018. A CE mark is a European classification indicating that the technologies meet product standards and are safe to use. This mark will be referenced in obtaining regulatory clearance.
Bactiguard signed a similar license agreement covering the ASEAN region of South East Asia with Vigilenz Medical Devices in 2015. In 2018, a combined distribution and license agreement for China was signed with Well Lead Medical, covering the full Bactiguard product portfolio generating initial revenues of around $3 million.
The deal with Zimmer Biomet is not the first time Bactiguard has struck a licensing agreement with a U.S. company. Bactiguard had a successful licensing agreement with Becton, Dickinson and Company (previously C.R Bard) since 1995. During that time, over 170 million Bactiguard coated Foley-catheters have been sold, primarily in the U.S. and Japan.
Christian Kinch, Bactiguard CEO, said of the agreement, “Our new, global partnership has the potential of expanding Bactiguard’s current license business significantly and making a substantial contribution to our license revenues, both in the near term and in a longer perspective. It also confirms the value of the Bactiguard technology in a new application and global context, which makes me both happy and proud.”
