Cardium Therapeutics announced a co-development and strategic licensing agreement with Bio-Zone Laboratories, Inc. for the formulation, manufacture and licensing of a portfolio of up to 20 aesthetics, advanced skin care formulations and other products for Cardium's MedPodium product line. Under terms of the agreement, Cardium will identify a line of products applying Bio-Zone technology such as that incorporated into its QuSome, inflacin, lipoceutical, lipospray and other formulation and delivery technologies.
“We are pleased to partner with Bio-Zone and look forward to expanding our Med-Podium product platform to potentially encompass aesthetics, metabolics, neurologics and nutraceuticals based on Bio-Zone's technology and extensive experience and know-how. Our Med-Podium product line initially includes seven podiatry-focused advanced skin care products and our recently announced weight management product, Linee. Under our agreement with Bio-Zone, we plan to develop a portfolio of up to 20 products that will be designed to address the emerging lifestyle issues that are increasingly important in our technology-driven society. Our products will initially be available through Cardium's Med-Podium web-based boutique with future plans to market and sell certain product lines through various select distributors or retailers in the United States,” stated Christopher J. Reinhard, chairman and chief executive officer of Cardium.
Under the terms of the agreement, Cardium will receive a royalty-free license for a portfolio of 20 products selected by Cardium using Bio-Zone technology in exchange for total consideration of $1.0 million through the issuance of shares of Cardium common stock priced at the greater of the closing price of Cardium common stock on the date of closing, or $0.50 per share. The purchased stock will be in the form of unregistered shares of common stock transferred to and held in an escrow account, to be released to Bio-Zone beginning six months following the closing date of the transaction with such shares being released in five equal monthly installments. The product manufactured for Cardium by Bio-Zone will be supplied at agreed-upon pricing terms and Cardium has a right of first refusal with respect to any potential sale of Bio-Zone or Bio-Zone assets, under which Cardium would be entitled to acquire Bio-Zone or Bio-Zone assets as applicable on the same terms and conditions as negotiated to mutual acceptability with any third party.
Bio-Zone Laboratories is a custom product manufacturer that provides cost-effective, high quality formulations and products to a number of private-label customers. The company operates a cGMP manufacturing facility in Pittsburg, California, and is registered with the US Food and Drug Administration (FDA) as a drug manufacturer and has several novel drug delivery technology platforms and corresponding products and drug candidates that are broadly applicable to multiple medicinals, therapeutics and dosage forms, including topical and oral applications.
Med-Podium is being developed as a portfolio of premium, science-based nutraceuticals, medicinals, metabolics, neurologics and aesthetics designed to promote optimal health and wellness for today's active and professional lifestyles and also delivers customized nutritional supplements and other products featuring easy to use pills and capsules, novel, fast-acting oral drops and sprays, and innovative transdermal delivery systems.
Cardium is focused on the acquisition and strategic development of new and innovative bio-medical product opportunities and businesses that have the potential to address significant unmet medical needs and definable pathways to commercialization, partnering and other economic monetizations. Its current investment portfolio includes the Tissue Repair Company, Cardium Biologics, and the Company's in-house Med-Podium lifestyle medicinal brand platform.