Med-Design Signs World-Wide License Agreement With BD

The has signed a Binding Letter of Agreement with respect to the material terms for the grant to BD () of the exclusive worldwide license to utilize Med- Design’s patent rights and know-how in the manufacture and sale of safety syringe products.

This agreement requires final Board approval from both companies and the approval of BD management.

Med-Design and BD will work to quickly to memorialise the subsidiary terms of the agreement and to secure the required approvals.

While such approval cannot be assured, the Companies are working to complete the agreement shortly and secure approval by no later than March 31.

As part of the negotiated terms of this agreement, in addition to an up front payment, Med-Design is to receive continuous royalty payments on any and all spring-based retracting hypodermic syringes sold world- wide by BD for a period equal to the life of the Company’s principal syringe patent.

James Donegan, Med-Design Chairman and CEO, commented, “We are delighted to take this next giant step in our expanding relationship with BD. The syringe or skin injection market, estimated to be in excess of 8 billion units per year worldwide, is the single largest market for disposable medical sharps and BD is clearly the market leader. This is expected to be our most productive and important licensing agreement to date.” Donegan further stated, “This latest agreement with BD clearly affirms the significant appeal of our products and the strength of our intellectual property.”

In addition to this license for the safety syringe, Med-Design previously announced the granting to BD of licenses for five products in the fields of blood collection and I.V. catheter insertion, as well as options to obtain licenses on a number of Med-Design safety needle products.

Several of these products are expected to be introduced by BD this year and in the first half of 2001.

Beyond the six option products included in this current syringe license, the option period for five additional option products has been extended until April 13.

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