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GAINESVILLE, Fla. -- Quick-Med Technologies, Inc. announces that it has entered into a multi-year patent and technology license agreement with Derma Sciences, Inc., a manufacturer and supplier of wound and skin care products. The agreement licenses QMTs NIMBUS antimicrobial technology to Derma Sciences on an exclusive basis for use in specific wound care products, including conforming gauze, gauze sponges, gauze bandage rolls, gauze packing strips, oil emulsion acetate and Unna Boot dressings.
QMT is a pioneer in wound care antimicrobial innovations, and we are pleased to enter into this exclusive license agreement, said Edward J. Quilty, chairman, president and CEO of Derma Sciences. This license agreement with QMT represents further momentum in our business strategy of using free cash flow from our base business to fund the marketing and sales of novel, higher-margin products. The NIMBUS technology is a perfect fit for our growing infection control portfolio of products. We expect NIMBUS to offer significant benefits over competitive technologies, and to be a great new weapon for clinicians to use to help fight hospital-acquired infections, a growing concern worldwide. The products we develop with this technology will help us achieve our goal of advancing wound care by bringing new technologies to the market and empowering clinicians.
We are confident that the wound dressings we plan to develop incorporating NIMBUS technology will represent a significant improvement over current technologies, which would give clinicians more topical antimicrobial options for post-operative and chronic wound indications, said Barry Wolfenson, vice president of marketing and business development of Derma Sciences. In addition, our development studies to date have shown that it maintains its properties even in the presence of blood, which would offer an advantage over currently available technologies. As such, we look at this as a potential platform technology that we could roll-out to several products, increasing our relationship with QMT as time goes on.
Under the terms of the agreement, QMT will receive royalty payments of 20 percent of the net revenue Derma Sciences receives from sales of the licensed products. In addition, the company will receive an upfront license signing fee of $50,000 and quarterly advance royalty payments of $25,000 for the next nine months from the effective date of the license agreement. This agreement is exclusive for the U.S. and Canada wholesale markets.
The companys patented technology, NIMBUS (Novel Instrinsically Microbonded Utility Substrate), employs a family of advanced antimicrobial polymers that destroy bacteria at the cellular level, thereby eliminating the risk of developing drug resistance. The NIMBUS technology works by creating a permanent bond with a multitude of substrates (without leaching) and is less than 10 percent of the cost of silver-based antimicrobials. Studies conducted by the company, as well as by independent laboratories, demonstrate that NIMBUS is highly effective against methicillin-resistant Staphylococcus aureus (MRSA) and vancomycin-resistant Enterococcus (VRE), two of the most significant antibiotic-resistant organisms responsible for hospital infections.
Source: Derma Sciences, Inc. and Quick-Med Technologies, Inc.