People you are not going to believe it but there it is. we all were right about Olympus
Xillix Technologies Corp -
Xillix in dispute with Olympus over cancer detection technology
Xillix Technologies Corp
XLX
Shares issued 31,786,474
1999-07-21 close $0.99
Thursday Jul 22 1999
Mr. Pierre Leduc reports:
Xillix Technologies Corp. is commencing proceedings against Olympus Optical
Co. Ltd. of Tokyo for misrepresentation, breach of duty to act in good faith and
misuse of trade secrets.
Xillix is the world leader in the development and commercialization of fluorescence
based medical imaging technology, which helps physicians diagnose early-stage
lung and gastrointestinal cancers. When tissue containing abnormal cells is
exposed to light from Xillix's patented fluorescence imaging devices, physicians
are able to detect precancerous and cancerous cells.
Because early detection is still the most important factor in the successful treatment
of cancer, this technology has already had a positive impact on patient survival.
The company's lead product, the Xillix LIFE-Lung Fluorescence Endoscopy
System, is the only government-approved autofluorescence medical device for the
early detection of cancer. It has been approved for sale worldwide, and over 130
Xillix systems are currently in use in leading medical clinics. Xillix is currently
working on second-generation and third-generation improvements to the
technology, and development of a related system for early detection of
gastrointestinal cancer is near completion.
Xillix is a recognized world leader in autofluorescence technology, and in order to
maximize worldwide marketing opportunities the company entered into a joint
development agreement with Olympus Optical Co. of Japan. Olympus has a
70-per-cent share of the world endoscopy market. Under the terms of the
agreements, first signed in 1994 and expanded in 1997, Olympus agreed to help
finance Xillix's development work and in exchange receive the rights to market the
Xillix LIFE-Lung Fluorescence Endoscopy System and the Xillix LIFE-GI
Fluorescence Endoscopy System worldwide.
The two companies consulted regularly on product development, and in its claim
Xillix states that through the joint development activity Olympus obtained trade
secrets from Xillix and used them for its own benefit.
At the same time as the joint development was being performed, Xillix charges,
Olympus was secretly filing and prosecuting patents potentially competitive to
those of Xillix. The authors of the Olympus patent applications were the same
Olympus employees who were involved in the Xillix joint development project.
Olympus did not disclose these activities to Xillix.
Xillix is seeking damages and other remedies against Olympus concerning any
autofluorescence imaging products that contain Xillix technology or trade secrets.
As stipulated in Xillix's agreements with Olympus, dispute resolution proceedings
will take the form of arbitration and will occur in Japan according to Japanese
arbitration rules. The interpretation of the agreements and the remedies will be
governed according to the laws of British Columbia, Canada.
Pierre Leduc, Xillix president and chief executive officer, said that the company is
stunned at its discovery of Olympus actions, and that management is determined
to press Xillix's claims against Olympus aggressively.
"Xillix has invested millions of dollars in its technology and its joint development
relationship with Olympus. The actions of Olympus, which stem from their own
undisclosed related development activities before and during the joint development
efforts on the Xillix LIFE Imaging system, are in our view absolutely
reprehensible," said Mr. Leduc. "We will not tolerate a lack of candor nor
improper competition by any party, least of all our joint development partner,
which had a duty to deal with us honestly and in good faith. We are determined to
proceed aggressively against anyone who has misused Xillix's intellectual property
or trade secrets."
Xillix's autofluorescence technology has been clinically proven to be 171-per-cent
better than the current white light standard in helping physicians detect lung cancer.
Xillix will accelerate efforts to find a new development partner to market the Xillix
LIFE-Lung Fluorescence Endoscopy System. Xillix's development and clinical
work in gastrointestinal cancers has also proven very promising. Xillix will
undertake efforts to attract new development and marketing partners, particularly
those interested in improved detection of Barrett's esophagus, which is associated
with an increased risk of cancer in the esophagus, currently the fastest growing
incidence of cancer in North America. Xillix will leverage its core intellectual
property and strong clinical relationships with international researchers to actively
exploit a variety of imaging modalities. However in the interim, all sales and
development activity relating to the Xillix LIFE-Lung and the Xillix LIFE-GI
products will be suspended.
"As a result of this dispute with Olympus, Xillix will be forced to consider
significant restructuring in order to preserve shareholder value," stated Mr. Leduc.
"Unfortunately, the people who will be most adversely affected by this dispute are
those cancer patients who may never benefit from the early detection that Xillix's
technology can provide."
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
