Bactiguard said today that it inked an exclusive global license agreement worth up to $5 million with Zimmer Biomet (NYSE:ZBH) to apply its infection prevention technology to Zimmer’s orthopedic trauma implants.
The agreement consists of an upfront license fee of $3 million and additional contingent payments of $2 million, based on clearance and royalties on net sales after commercialization, Tullinge, Sweden-based Bactiguard said.
Orthopedic trauma implants with Bactiguard’s tech won CE Mark approval in December 2018, according to the company. The implants are approved for sale in Malaysia, where clinical studies are ongoing. Bactiguard said in a news release that its technology is also approved for use in the urinary tract, respiratory tract and bloodstream.
“Our new, global partnership has the potential of expanding Bactiguard’s current license business significantly and making a substantial contribution to our license revenues, both in the near term and in a longer perspective,” CEO Christian Kinch said in prepared remarks. “It also confirms the value of the Bactiguard technology in a new application and global context, which makes me both happy and proud.”
The deal is Bactiguard’s “most important transaction since 1990,” Kinch added on Twitter. The company said it inked a similar deal in 2015 for coated orthopedic trauma implants with Vigilenz Medical Devices in southeast Asia.
