Under the terms of the License Agreement, PPTI will acquire the rights to the three embolization products, one issued patent , and technical and market know-how in return for the assumption of up to approximately $650,000 of certain Surgica liabilities, cash payments of up to approximately $400,000 against certain other Surgica liabilities and a royalty to Surgica of 25 percent of net profits on revenues generated by the sale of the Surgica products.
A related Supply and Services Agreement provides for the manufacture of product by Surgica and the provision of services to PPTI, including further product development, in exchange for operating payments to Surgica.
When, and if, the Asset Purchase Option is exercised by PPTI, Surgica would then operate as a division of PPTI and it is contemplated that Louis R.
Beyond Surgica's current indication for use, upon completion of the transaction, PPTI intends to submit a new 510(k) application to the FDA to expand labeled indications for Surgica's products to include treatment of uterine fibroids, liver cancer and certain other applications.
Spine Wave is a private company formed last year by PPTI and Windamere Venture Partners to develop and commercialize this product.
PPTI has worked on protein design and synthesis since the company's inception in 1988, and has developed a portfolio of proprietary biomaterials.