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Animas Acquires Technology for Disposable
Insulin
Micro-pumps and Micro-needles
(October 29, 2004)
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Animas
Corporation (Nasdaq:PUMP) today announced that it has entered into license and
development agreements with the Swiss company, Debiotech, SA for MEMS
technology and intellectual property related to next-generation insulin
pumps and micro-needles. Under the
terms of the agreements, Animas has acquired the exclusive worldwide license
to make, use, and sell products utilizing the intellectual property
portfolio owned by Debiotech relating to micro-pumps and micro-needles for
use related to insulin administration and in-vivo glucose sensing. Included in this portfolio are over 70
granted or issued patents.
MEMS
technology refers to Micro Electromechanical Systems and utilizes
fabrication techniques similar to those used in the semi-conductor
industry. The anticipated date for the launch of the first micro-pump
utilizing this new technology is 2007.
“The acquisition of this technology gives Animas access to the
next major leap in insulin pump technology and moves us one step closer to
our ultimate goal of developing an artificial pancreas,” said Dr.
Kathy Crothall, President and CEO of Animas. “Animas’ newest pump, the IR
1200, is the smallest full-featured insulin pump, with high precision and
ease-of-use. The marriage of
Debiotech's and Animas’ technology coupled with our emphasis on
customer service and education promises continued progress towards our
mission of improving the lives of people with diabetes. We strongly believe that this
micro-fluidics technology will make pump therapy attractive to a far
greater number of people with diabetes as it should allow for the development
of much smaller insulin pumps.
Finally, the micro-needle technology offers the possibility of
reducing the pain and inflammatory response associated with infusion
needles and may additionally be useful for the sensing of glucose.”
“Animas is continually searching for
technologies to improve and simplify diabetes management for our
patients,” said Crothall. “We believe we found just such a
winner in Debiotech, which has invested over 10 years in designing, testing
and building this micro-technology. Debiotech is located in Lausanne,
Switzerland, known as a hotbed of MEMS technology expertise and
development.”
"We
are extremely impressed with the quality of the technical team at
Debiotech, and the thoroughness of their development work to date. Further benefits of this technology are
the performance improvements of this technology compared to existing
technology," commented Patrick Paul, Vice President of Research and
Development for Animas. "In addition, we also believe that this
acquisition strengthens our intellectual property position in our existing
primary markets."
"We
are delighted to enter into a long term partnership with Animas. It is one of the fastest growing
companies in the medical device industry, with a strong commitment towards
improving the quality of life for people with diabetes,” said
Frédéric Neftel, M.D., President and Chief Executive Officer, Debiotech
S.A. “In our view, Animas has
outstanding products and excellent service. The ability of Animas to
develop leading-edge patient-friendly products is evidenced in its newest
product, the IR1200. The synergies
between our companies will allow us to bring new breakthrough products into
this market, to significantly improve the lives of people with diabetes,
and to build together a leading presence in this market.”
“This collaboration is a major step
in Debiotech’s continuous growth through global presence in the
medical device arena with leading partners in the industry. Animas
represents a wonderful platform for future important developments in the
diabetes field,” added Alan How, Business Development Manager of
Debiotech SA.
Animas
will pay $12 million in cash and will issue 400,000 restricted shares of
Animas common stock to Debiotech for the rights as outlined above. Additionally, Animas will pay Debiotech a
license fee up to $2.0 million upon receipt of the requisite deliverables
for 510(k) approval from the FDA for the micro-pump, providing receipt of
such deliverables occurs prior to certain dates. It is expected that a large portion of
the upfront license fee will be taken as an operating charge in the fourth
quarter of 2004, and the remainder of the upfront license fee will be
capitalized, and upon project success, expensed ratably over the life of
the technology. This agreement is
not expected to have any material impact on the Company’s anticipated
net revenues or net income in 2005 and 2006. These agreements also call for
Debiotech to receive royalties on sales of products resulting from these
agreements.
_________________
About
Animas Corporation: Animas, a leading maker of insulin infusion pumps and
related products, is dedicated to improving diabetes management and making
insulin pump therapy easier for patients with insulin requiring diabetes
and healthcare professionals through product innovation, exemplary customer
support and superior customer education. For more information on Animas,
visit www.animascorp.com or call Animas Corporation at
877-937-7867.
Debiotech
S.A. specializes in the research and development of innovative medical
devices in the field of drug delivery systems, drug eluting stents,
electronic infusion systems, dialysis, diagnostics and imaging devices,
implantable drug delivery systems and micro-systems for insulin and peptide
drug delivery. www.debiotech.com. Debiotech has numerous
exclusive collaboration agreements with leading companies in the medical
device and pharmaceutical fields.
Statements
in this press release or made by management from time to time regarding
Animas Corporation that are not historical facts are forward-looking
statements and are subject to risks, assumptions and uncertainties that
could cause actual future events or results to differ materially from such
statements. Any such forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
The following factors, among others, could cause Animas’
actual results to differ materially from those described in a forward-looking
statement: the failure to successfully commercialize the licensed
technology, technical issues or the failure of the IR1200 to gain
significant market acceptance; failure to capture recurring purchases of
ancillary supplies by patients using Animas’ pumps; any significant
disruption with vendors; any failure to achieve and then maintain
profitability; the failure of Animas’ ezSet Infusion Set to be
fully-developed or commercially accepted; technological breakthroughs in
diabetes monitoring, treatment, or prevention that could render Animas’
products obsolete; failure to comply with any FDA or foreign regulations;
an inability to attract and retain personnel; competition; an inability to
adequately protect Animas’ intellectual property; product liability
lawsuits; and, the failure to secure or retain third party insurance
coverage or reduced reimbursement for Animas’ products by third party
payors. This list is intended to
identify only certain of the principal factors that could cause actual results
to differ. Readers are referred to
the reports and documents filed from time to time by Animas Corporation
with the Securities and Exchange Commission for a discussion of these and
other important risk factors.
Readers are cautioned not to place undue reliance on forward-looking
statements, which are made as of the date of this press release. Animas Corporation undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events, or for any other reason.
# # #
Contacts:
Contact: Rick Baron
Animas Corporation
610-644-8990, ext. 1168
email:
Debiotech SA
Avenue de Sevelin, 28
CH-1004 Lausanne, Switzerland
Phone: +41-21-623-60-00
Fax: +41-21-623-60-01
email:
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