Wednesday, June 16, 2010

CryoSeal Fibrin Sealant System for Asahi

ThermoGenesis Corp. has made a deal to phase out its production of its CryoSeal wound care product line and license the product to a Japanese distributor.
Asahi Kasei Kurary Medical Co. Ltd. will pay ThermoGenesis $1 million this month so the Rancho Cordova med-tech company will continue to supply CryoSeal while Asahi ramps up production facilities and regulatory approvals in Japan. ThermoGenesis will provide the CryoSeal Fibrin Sealant System for Asahi to distribute in Japan and other Pacific Rim countries for 30 months, at which time Asahi will take over manufacturing.
ThermoGenesis will receive royalty payments on all CryoSeal products Asahi manufactures after the 30 months. Asahi has the option to acquire the CryoSeal line and patent rights any time in the next five years.
ThermoGenesis has enough CryoSeal inventory that it won’t need to engage in any “meaningful” manufacturing in the next 30 months, chief executive officer J. Melville Engle said in a news release.
“The divestiture of CryoSeal is part of our long-term strategy to focus on the development of enabling technologies for the stem cell regenerative medicine market,” Engle said. “This transaction frees up management and corporate resources to address these more strategic market opportunities.”

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