Dec 29 2005
Landec Corporation, a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, announced today that it has entered into an exclusive licensing agreement with a newly established medical device company. The upfront license fee received of $250,000 is for the exclusive rights to use Landec's Intelimer® materials technology in the partner's specific device field worldwide. Landec will also receive royalties on future product sales. In addition, Landec received preferred stock initially valued at $1.5 million which represents a 16.7% ownership interest in the medical device company. Landec ownership interest could increase to as high as 19.9% based on achieving certain milestones which are expected to be met within the next twelve months.
Gary Steele, Landec's President and CEO said, "Completion of this agreement formalizes the desire of both parties to utilize Landec's proprietary materials in addressing a long-time medical need. We are impressed with this partner's commitment to introducing new innovative materials that address patient needs. The partner has selected to work with Landec's Intelimer materials technology for its unique temperature-activated properties. For competitive reasons neither Landec nor its new partner want to disclose the specific field of use or the partner's corporate name at this time."
Steele continued, "This agreement is consistent with our licensing/partnering business objectives of expanding the use of our proprietary Intelimer polymers to areas outside of our core food and ag businesses."