Calgary-based technology accelerator Westaim Corp. has inked a deal which could be worth $55 million US for its patented product designed to ease the pain of chronic wounds and burns.
Westaim Corp’s subsidiary, Westaim Biomedical Corporation of New Hampshire, said the exclusive licensing agreement with global medical devices group Smith and Nephew PLC will cover both Westaim’s antimicrobial coating technology and burn dressing business.
British-based Smith and Nephew is paying $16.5 million US in cash to Westaim Biomedical, with the value of the deal increasing to as much as $55.5 million US depending on regulatory and sales successes.
Westaim Biomedical, which does its research and manufacturing in the Edmonton suburb of Fort Saskatchewan, will continue to make its product for Smith and Nephew, and will receive royalty payments. The two companies will also collaborate on developing the technology further.
Using a nanocrystalline coating of pure silver for the bandages — a technology first developed at the company’s Alberta research facility — the company’s Acticoat dressings have proven effective for burn treatments and are used in major burn centres across North America. The dressing can be an effective weapon against antibiotic-resistant ‘superbugs.’
Tony Johnston, senior vice-president for Westaim’s corporate affairs, says more than four million individuals have chronic wounds in North America, a problem increasing along with the aging population. More than 55,000 amputations are performed every year due to diabetic foot ulcers alone, he adds.
It was the second shot in the arm for Westaim last week. On Friday, federal Industry Minister Brian Tobin announced a $30-million Technology Partnerships Canada (TPC) repayable investment in the research and development of flat panel displays and development of pilot production processes at iFire Technology Inc, another Westaim subsidiary.
The three-year investment will create 127 high-quality jobs in addition to the 150 scientists, researchers, technicians and support staff currently employed at iFire’s Toronto facility.
“The clear benefits of this project are enormous and place Canada on the leading edge of innovation in this exciting field,” said Tobin.
The goal of the project is to develop branded display modules for affordable, hang-on-the-wall televisions with screen sizes between 25 and 50 inches by the end of 2003.
As a technology “accelerator,” Westaim Corp. launches high-potential technologies into the marketplace and then looks for exit strategies through IPOs or sales.
