Under the agreement, BD (Becton, Dickinson and Company) will fund a research program at Accelr8 through September 30, 2009. The research program includes mutually agreed milestones to support BD’s product development planning. BD has the option, during or at the conclusion of the research program, to exclusively license Accelr8’s intellectual property in the field of infectious diseases diagnostics. Accelr8 would retain the right to commercialize its technology for other applications.
The option, if exercised by BD, requires BD to pay an initial fee, as well as running royalties on covered products. The license further contains certain diligence requirements for BD to develop and commercialize such products. Under the license, BD will fund and conduct all product development, manufacturing, and marketing.
David Howson, Accelr8’s president, said: “We are very pleased to enter into a formal relationship with BD to develop what Accelr8 believes will be the next major advance in infectious diseases diagnostics. We also believe that this relationship offers our shareholders the best opportunity by avoiding the distraction, risk, and dilution of further fundraising.”