Quick-Med Technologies Receives First Royalties for its NIMBUS® Wound Dressings
Key Milestone in the Further Advancement of
Patented NIMBUS Technology
Financial Results Reported Today on Form 10-Q
Gainesville, Florida - November 16, 2009 - Quick-Med Technologies, Inc. (OTCBB:
QMDT) announced today that the Company has begun to receive royalty payments for its
novel NIMBUS® non-leaching antimicrobial technology. The royalty payment is from
Quick-Med licensee Derma Sciences, Inc. (OTCBB: DSCI) for initial sales of its
BIOGUARD™ dressings.
The Company believes that BIOGUARD sales are off to a strong start. Royalties earned
from late June to September 30, 2009 totaled more than $79,000 representing initial
BIOGUARD sales of nearly $400,000. Quick-Med’s financial statements for the period
ended September 30, 2009 reported only about $4,500 of the royalties as $75,000 was
credited against the advance royalty fees the Company had previously received in
accordance with the terms of the license agreement. There are no further credits against
future royalty fees; all future royalties are to be reported as revenues.
The Company’s financial statements for the quarter ended September 30, 2009 also
reflect modest revenues from BASF for sales of our MultiStat® compound as well as
revenues from Avery Dennison for work under a Joint Development Agreement to
develop medical grade NIMBUS adhesives.
MultiStat revenues were significantly lower than the same quarter last year. The
Company believes that this may reflect prior experience that sales of the compound to
cosmetics companies by BASF, the Company’s manufacturing and distribution partner,
can fluctuate considerably by quarter and are susceptible to the inventory management
practices of the retail sector. End sales of cosmetics products that contain MultiStat are
ongoing, based on a continued presence of these products in retail outlets that is similar to
that in prior years. Quick-Med’s Form 10-Q, filed on November 16, 2009, is available at
www.sec.gov.
About BIOGUARD Wound Dressings
BIOGUARD dressings, which were introduced in June by Derma Sciences, are the first
wound care products to feature Quick-Med’s novel, FDA-cleared NIMBUS technology.
The dressings serve as a barrier to infection, kill germs absorbed into the dressing, and do
not interfere with tissue healing. The NIMBUS active agent maintains effectiveness even
in the presence of large amounts of proteinaceous exudates.
NIMBUS is unique in that it is the only non-leaching antimicrobial wound dressing,
which the Company believes is an important distinction; other antimicrobial dressings
rely on the release of chemicals to the wound bed that can impede the wound healing
process. By its design, NIMBUS poses minimal risk of bacteria developing resistance.
Quick-Med’s NIMBUS barrier gauze wound dressing received market clearance on
February 25, 2009 from the U.S. Food and Drug Administration via FDA’s De Novo
review process, a special clearance program for low-risk medical devices that are found
to be “not substantially equivalent” to any predicate device. Derma Sciences reported
first commercial sales in late June. NIMBUS technology is protected by nine Quick-Med
U.S. patents and patents pending and 24 foreign counterparts.
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