Bio-Layer in new US development deal

Brisbane based Bio-Layer, a wholly-owned subsidiary of SSH Medical (ASX:SSH), has entered into a development and marketing agreement with a US-based life sciences company for the use of its surface coating product Mix&Go.

The new partner, which Bio-Layer declined to name, is said to be Nasdaq-listed, has a market capitalisation of about US$1 billion and is a global provider of consumable biological products and diagnostics.

"This is the first of what we hope are a few agreements for Mix&Go this year," said Bio-Layer CEO Jason Armstrong. "We also plan to market two new products in six months time."

Mix&Go is a surface coating for plastics and glass that automatically binds antibodies and protects them without the need for complex chemical reactions. According to Bio-Layer the technology improves assay performance, reduces manufacturing costs, and improves the reliability of biological testing products.

"Technology transfer will commence immediately -- the agreement involves upfront payments, development milestones, payments for each new product release and royalties on product sales," said Armstrong.

Royalties paid to Bio-Layer will be 4 per cent of product sales and it is a non-exclusive license enabling Bio-Layer to re-license the technology to other significant industry players.

"As a commercialisation-focused organisation, we realise the importance of getting 'runs on the board' as soon as possible," Armstrong said. "This is the second of what we believe will be a number of such transactions which will significantly bolster the financial viability of Bio-Layer, and reward stakeholders who have backed the company. It is a mid-sized licensing deal worth hundreds of thousands of dollars, rather than a large deal worth millions. "

Bio-Layer partnered with another US-based life science technology company, Invitrogen, last year, and intends to sell the same version to other partners.

The company was acquired by SSH Medical in October following a successful capital raising of AUD$4.256 million. In November, SSH shareholders approved of a name change to Bio-Layer and the head office was relocated to Brisbane in December.

"The name change to Bio-Layer will take place in the near term," said Armstrong. He said the company's ASX code would also change to BLS.