Wednesday April 15, 11:01 am Eastern Time
CardioTech International, Inc. Announces a Research and Development Agreement With The Royal Free Hospital School of Medicine
WOBURN, Mass., April 15 -- CardioTech International, Inc., (Amex: CTE - news) announced today that on April 1, 1998 its wholly owned subsidiary, CardioTech International, Ltd., signed a collaborative research and development agreement with The Royal Free Hospital School of Medicine (University of London). The agreement, which covers a two year period, relates to the investigation and clinical trials of CardioTech's MyoLink(R) peripheral vascular graft (an artificial artery), and the clinical evaluation of endothelial cell-seeding of peripheral vascular grafts.
The research will be funded by a loan of 252,942 pound ($424,765) from Freemedic PLC a subsidiary of the Medical School to CardioTech International, Ltd. The loan has a fixed rate of interest of 10% and is convertible, at Freemedic's option, into Common Stock of the Company at $3.70 per share, from April 1, 1998 until March 20, 2000. During this period, the Loan is also convertible, at the Company's option, into Common Stock of the Company at $3.70 per share, provided that the market price for the Company's Common Stock exceeds $3.70 from the day that the Company gives notice of such conversion until seven business days thereafter (the date on which the Common Stock is converted). The loan is secured by a pledge of all of the assets of CardioTech International, Ltd. and is guaranteed by the Company.
Dr. Michael Szycher, Chairman of CardioTech International, Inc., stated ''We are honored that one of the premier medical schools in the world has entered in to this research and development agreement with CardioTech. The work of the principal investigator, Mr. George Hamilton, MB, ChB FRCS Consultant Vascular Surgeon at The Royal Free Hospital is well recognized in the vascular surgical community.''
Mr. Alan Edwards, Executive Vice President and Managing Director of CardioTech International, Ltd., said ''Mr. Hamilton and the department of vascular surgery at the Royal Free Hospital have considerable experience in endothelial cell seeding techniques which we believe may provide a tissue engineered non-thrombogenic lining to CardioTech's Myolink(R) Peripheral Graft. The endothelial cell lining is expected to improve clinical performance in this low blood flow application. Current products have not met the needs of patients requiring the revascularization to vessels below the knee. Initial experience shows that Myolink(R) Peripheral Grafts constructed of ChronoFlex(R) are a better substrate for the attachment of endothelial cells than leading grafts on the market today.''
CardioTech International, Inc., with operations in Woburn, MA and Tarvin, Cheshire, U.K., designs and manufactures polyurethane-based vascular graft devices for the treatment of late-stage cardiovascular disease. Additionally, the Company synthesizes and manufactures medical grade polyurethanes for use in the development of implantable medical devices.
The Company believes that this release may contain forward-looking statements that are subject to risks and uncertainties. Such statements are based on management's current expectations and are subject to a number of factors that could cause actual results to differ materially from the forward- looking statements. The Company cautions investors that there can be no assurance that the actual results will not differ materially from those projected or suggested in such forward-looking statements, as a result of various factors, including but not limited to the following: the timely development of products by the Company, the Company's ability to obtain financing to support its working capital needs, intense competition related to the development of synthetic grafts and difficulties inherent in developing synthetic grafts. As a result, the Company's further development involves a high degree of risk. |
