US$7.5 Million Up-Front License Fees and Performance Minimums Highlights of Agreement
QUÉBEC CITY, Nov. 25, 2015 /PRNewswire/ - TSO3 Inc. (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, has granted Getinge Infection Control AB, a global leader in infection control solutions, exclusive global distributor rights to its FDA-cleared, STERIZONE® VP4 Sterilizer for US$7.5 million, plus performance minimums.
The performance requirements are multi-year and based on a formula for minimum unit shipments, with the minimum annual commitments reaching in excess of 10% of the estimated annual global replacement market within the first five years. TSO3 estimates the annual replacement market worldwide totals more than 3,000 units or $450 million annually. Getinge will also receive ongoing technical support from TSO3 as part of the Agreement.
"This exclusive partnership with a top global provider of infection control devices and services represents a phenomenal endorsement of the unmatched ability our STERIZONE® Sterilization System to sterilize the most challenging loads and complex devices used in healthcare today," said TSO3 president and CEO, R.M. (Ric) Rumble. "It comes after Getinge has established a strong sales pipeline in the United States over the last several months, which resulted in the first shipments being recorded in Q3 of 2015."
According to Joacim Lindoff, President and CEO of Getinge Infection Control : "The STERIZONE® VP4 Sterilizer uniquely addresses an unmet global need for cost effective, high throughput sterilization of complex medical devices used in hospital environments. Our initial customer experience with the product line has been excellent. We're now laying plans for a global rollout, designed to leverage the global reach of Getinge's subsidiaries and distributors partnerships across six continents."
The STERIZONE® VP4 Sterilizer developed by TSO3 is a dual sterilant, low temperature sterilization system that utilizes vaporized hydrogen peroxide (H2O2) and ozone. Its single cycle can sterilize a large number and wide range of compatible devices, thereby allowing for a cost effective and error-free sterilization process. TSO3's unique Dynamic Sterilant Delivery System™ automatically adjusts the quantity of injected sterilant based on the load composition, weight and temperature. With its large 75 lb. load capacity and short cycle time, the STERIZONE® VP4 Sterilizer can enhance throughput and lower sterilization cost.
The STERIZONE® VP4 Sterilizer was cleared for commercialization in the United States in December 2014. The product recently received clearance in Canada to terminally sterilize multichannel flexible endoscopes, which are some of the most complex medical devices used in healthcare.
The additional claims allowed for the STERIZONE® VP4 Sterilizer comes at a time when government health agencies are applying increasing pressure on healthcare providers to improve their vigilance with device reprocessing, especially as an aging patient population is leading to an increased use of colonoscopes and other medical devices used during minimally invasive surgery procedures. The growing concerns are based upon the increasing number of reported cases where use of the less robust disinfection process resulted in the transmission of infection, some of which involved antibiotic resistant microbes that led to the patient's injury or death.
More information about the STERIZONE VP4 Sterilizer is available on TSO3's website: www.tso3.com/en/products/sterizone-vp4.
Desjardins Capital Markets acted as exclusive financial advisor to TSO3 in the context of the agreement.
About Getinge Infection Control
Getinge Infection Control (GETINGE) is one of three business areas within Getinge AB, a publicly-listed, Swedish-based group of companies. The Getinge Infection Control business area consists of two divisions; Healthcare and Life Science. For the Healthcare sector, GETINGE provides solutions for infection control whereas for the Life Science sector, GETINGE is a key provider of solutions for contamination prevention.
Worldwide, GETINGE ranks among the leading providers of disinfectors and sterilizers within the healthcare and life sciences segments. Since its foundation in 1904, Getinge Infection Control has stood for innovation and technological progress in the field of disinfection and sterilization. Together with the other two business areas, Extended Care (ARJOHUNTLEIGH) and Medical Systems (MAQUET), the entire Getinge Group focuses on state-of-the-art medical technology.
The Getinge Infection Control organization is to be found all over the world, with 36 subsidiaries on six continents and over 230 distributors and partner companies in sales and service representing Getinge Infection Control.
Getinge Group is a global leading medical technology company that operates in the areas of surgery, intensive care, infection control, care ergonomics and wound care. Getinge Group has nearly 16,000 employees in over 40 countries and generates sales of almost SEK 27 billion (2014). The Group is divided into three business areas: Medical Systems, Extended Care and Infection Control and operates under the brands of Maquet, ArjoHuntleigh and Getinge.
Founded in 1998, TSO3's activities encompass the sale, production, maintenance, research, development and licensing of sterilization processes, related consumable supplies and accessories for heat-sensitive medical devices. The Company designs products for sterile processing areas in the hospital environment that offer an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals. It also offers services related to the maintenance of sterilization equipment and compatibility testing of medical devices with such processes. For more information about TSO3, visit the company's web site at www.tso3.com or contact Liolios Group at (949) 574-3860 or email TOS@liolios.com.
The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO3) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other risks and uncertainties.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.
SOURCE TSO3 Inc.