The Medical House PLC: Disposal of Needle-Free Insulin Injector Business (the “Disposal”)LONDON, Aug. 20, 2007--The Medical House PLC (“TMH” or the “Company”), (AIM:MLH) the drug delivery specialist, is pleased to announce that it has concluded the sale of its SQ-PEN needle-free insulin injector business to Diabetes Management International B.V. ( “DMI”) for an initial consideration of £750,000 in cash. An additional payment will be made in respect of all stocks of SQ-PEN materials held by TMH amounting to approximately £60,000.
TMH’s sales of SQ-PEN products in the 12 months to 30 June 2007 amounted to £90,000. This insulin injector business involved the supply of product to private individuals, which is a very time consuming process and an area which is outside the Company’s core activity. The Disposal now enables TMH to concentrate all of its resources on growing its drug delivery systems business which involves developing, licensing and supplying pharmaceutical companies with bespoke self-injection technologies and devices.
Under the terms of the Disposal agreement, TMH grants DMI an exclusive worldwide licence to use the SQ-PEN technology for the delivery of insulin to humans. TMH will also provide ongoing assistance with manufacturing the SQ-PEN for a period of up to 12 months. A further payment of an additional £50,000 will be made to TMH at the end of that 12-month period.
In addition to the licence, the consideration payable also covers the tooling necessary to manufacture the SQ-PEN products; TMH will retain the rights to enable it to supply the technology to any of its customers for any purpose other than the delivery of insulin. The net book value of this tooling is £356,000.
Ian Townsend, Chairman, The Medical House PLC, said:
“We are delighted that the Disposal releases valuable resources which can be used to build on the successes of our drug delivery division.
These needle-free insulin injectors were the first drug delivery systems designed and manufactured by TMH and were instrumental in gaining a profile in the global drug delivery market. However, our business model is now clearly focused on developing devices which we license to pharmaceutical company partners who then combine our technologies with their drug products to create competitive advantages. We continue to make progress on all aspects of this model and the level of activity on all fronts in the year just started is encouraging.”
Posted: August 2007
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