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8-K - FORM 8-K - MISONIX INC | c20275e8vk.htm |
EX-10.1 - EXHIBIT 10.1 - MISONIX INC | c20275exv10w1.htm |
Exhibit 99.1
Misonix Contact: | Investor Relations Contact: | |||
Richard Zaremba | Kevin McGrath/Cameron Associates, Inc. | |||
631-694-9555 | 212-245-4577 | |||
invest@misonix.com | Kevin@cameronassoc.com |
MISONIX ANNOUNCES SETTLEMENT OF PURICORE LITIGATION,
INCLUDING ENTRY INTO A U.S. DISTRIBUTION AGREEMENT FOR
PURICORES ADVANCED WOUND CARE PRODUCT
INCLUDING ENTRY INTO A U.S. DISTRIBUTION AGREEMENT FOR
PURICORES ADVANCED WOUND CARE PRODUCT
FARMINGDALE, NY July 20, 2011 Misonix, Inc. (NASDAQ: MSON), a medical device company that
designs, manufactures and markets innovative therapeutic ultrasonic products worldwide for wound
debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical
applications, has announced today that it has settled the lawsuit brought against it by PuriCore
International Limited and PuriCore plc. (together PuriCore) in connection with the sale to
PuriCore of Misonixs Labcaire business in August of 2009. The settlement involves the forgiveness
by Misonix of up to $1,000,000 of not booked, contingent commission payments on future sales of
Labcaire products. PuriCore will continue to pay the $750,000 remaining on the Loan Notes issued as
part of the original Stock Purchase Agreement. Misonix also agreed to pay $650,000 towards
PuriCores legal costs. As an important part of the settlement, Misonix and PuriCore, Inc., a U.S.
subsidiary of PuriCore, entered into a Product License and Distribution Agreement (the
Distribution Agreement) whereby Misonix will distribute, on a limited exclusive basis with
respect to other therapeutic ultrasound companies in the United States, a private label version of
PuriCores Vashe® wound therapy product, which is a solution intended for cleansing, irrigating,
moistening, and debriding acute and chronic dermal lesions. Use of the new product will be
emphasized in conjunction with clinical procedures performed with Misonix ultrasonic systems and
gives surgeons and clinicians an expanding line of products for treating wounds. The Distribution
Agreement is for three years with a two year extension contingent on meeting certain goals. As
part of this Distribution Agreement, Misonix has the obligation over a three year period to either
purchase or pay a minimum of $2 million in gross margin value to PuriCore. When PuriCore receives
$2 million in gross margin purchases under the Distribution Agreement, it is anticipated that
Misonix will have received more than $4 million in gross margin.
Michael A. McManus, President and Chief Executive Officer of Misonix, stated, We are very pleased
to have resolved the dispute with PuriCore. Managing a lawsuit in the
U.K. and legal expenses associated with the case were consuming valuable senior management time and
resource. We believe the resolution of this lawsuit is in the best interest of shareholder value
and the continued growth of Misonix.
Prior to the lawsuit, we had been working with PuriCores wound care group in pursuit of a similar
distribution arrangement for the Vashe® product. In concert with the recent addition of Anika
Therapeutics S.r.l.s Hyalomatrix® skin substitute to our product portfolio, which is anchored by
our SonicOne® Ultrasonic Wound Care System, the PuriCore product becomes a valuable extension of
our wound treatment capability. We will be working with PuriCore on the development of a sterile
version of the product that can be used with the BoneScalpel with SonicOne Technology in the
operating room. We believe the PuriCore product addition will add incremental revenue and margin
to our existing wound care product platform.
Additional information concerning the Distribution Agreement can be found in the Current Report on
Form 8-K to be filed by Misonix with the U.S. Securities and Exchange Commission not later than
July 25, 2011.
About Misonix: Misonix, Inc. (NASDAQ: MSON) designs, manufactures and markets therapeutic
ultrasonic medical devices. Misonixs therapeutic ultrasonic platform is the basis for several
innovative medical technologies. Addressing a combined market estimated to be in excess of $3
billion annually; Misonixs proprietary ultrasonic medical devices are used for wound debridement,
cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications.
Additional information is available on the Companys Web site at www.misonix.com.
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With the exception of historical information contained in this press release, content herein may
contain forward looking statements that are made pursuant to the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995. These statements are based on managements
current expectations and are subject to uncertainty and changes in circumstances. Investors are
cautioned that forward-looking statements involve risks and uncertainties that could cause actual
results to differ materially from the statements made. These factors include general economic
conditions, delays and risks associated with the performance of contracts, risks associated with
international sales and currency fluctuations, uncertainties as a result of research and
development, acceptable results from clinical studies, including publication of results and
patient/procedure data with varying levels of statistical relevancy, risks involved in introducing
and marketing new products, potential acquisitions, consumer and industry acceptance, litigation
and/or court proceedings, including the timing and monetary requirements of such activities, the
timing of finding strategic partners and implementing
such relationships, regulatory risks including approval of pending and/or contemplated 510(k)
filings, the ability to achieve and maintain profitability in the Companys business lines, and
other factors discussed in the Companys Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its
forward-looking relationships.
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