Pyng Medical Corp. (TSX VENTURE: PYT) today announced it has completed the acquisition of the trauma assets of California-based Bio Cybernetics International (BCI) (dba “Cybertech Medical”, www.cybertechmedical.com), including the market leading Trauma Pelvic Orthotic Device (TPOD(R)), Mechanical Advantage Tourniquet (MAT(R)), and Cricothyrotomy Kit (CRIC(TM)). As previously announced, the purchase price was $US 2.4 million, part paid on closing and part subject to achievement of certain milestones. Pyng has received final regulatory approval for this transaction from the TSX Venture Exchange.
In order to partially fund the acquisition, Pyng obtained a loan from Vancity Capital Corporation. As part of that financing, Pyng has issued 110,000 common share purchase warrants to Vancity Capital at an exercise price of $0.55. Each warrant is exercisable to purchase one common share of Pyng until the date the loan is repaid or no later than June 6, 2013.
“With these additional trauma products and enhanced international distribution network, we expect to significantly increase the Company’s revenues and earnings by commercializing a suite of complementary products to common end-users in several large markets including hospitals, EMS and international military applications,” said David Christie, President and Chief Executive Officer.
Pyng is also pleased to announce the appointments of two former BCI executives responsible for the commercial acceptance of the acquired trauma assets, effective immediately. Ms. Julee Arbuckle will join Pyng as the Product Specialist responsible for sales of TPOD(R) and MAT(R). Julee has increased revenues from product sales of TPOD(R) and MAT(R) by approximately 30 percent annually since market launch in 2004 and 2005, respectively. Mr. Royce Rumsey, designer and developer of CRIC(TM) Kit, will assume the position of Vice President, Business Development, responsible for the commercialization of CRIC(TM).
TPOD(R) is used to stabilize patients with severe or “open-book” pelvic fractures and provides powerful, fast and safe simultaneous circumferential compression of the pelvic region. The MAT(R) tourniquet is used to staunch bleeding for patients with severed limbs. It is uniquely differentiated and easily applied by one-hand to provide life and limb-saving incremental compression in seconds.
“In addition to increasing revenue from sales of the market-leading MAT(R) and TPOD(R), we believe there will be rapid market adoption and tremendous commercial potential for the CRIC(TM) cricothyrotomy kit,” adds Christie. “We expect to receive UD FDA regulatory clearance during the summer and launch the product in the fall,” adds Christie.
CRIC(TM) is currenty under regulatory review by the US Food and Drug Administration, and is being developed with $750,000 of funding support and design input provided by the US Department of Defense (DOD) for the purpose of equipping US military medics. As with the MAT(R) and TPOD(R), the CRIC(TM) is designed to provide significant improvements in speed, efficacy and safety to life-saving medical procedures worldwide.
The Complete Rapid Illuminated Cricothyrotomy Kit (CRIC(TM)) is used to establish an airway in patients whose upper airway is blocked. An obstructed airway is the second leading cause of death on the battlefield, after severe blood loss. This is a standard procedure with civilian and military causalities involving a facial, jaw or upper neck injury.
Current methods for performing cricothyrotomy require the use of at least three distinct medical instruments: scalpel, retractor, insertion tube, and in many cases, a light source. Outside of a hospital setting, the procedure is extraordinarily difficult to perform, particularly on the battlefield.
CRIC(TM) is a lightweight handheld device that incorporates all necessary instruments including a depth-controlled scalpel in an easy to use, ergonomically designed system. In addition to funding support from the US DOD, CRIC(TM) is being developed with input from all four branches of the US military including the Navy/Marines, Army, Special Forces and Air Force. It has been specifically designed to meet the needs of the entire US military establishment, as a standard piece of lifesaving equipment for use by medics under very difficult conditions.
Clinical tests indicate that the TPOD(R) is the most rapid and effective commercially available device for treating pelvic trauma, pain, and bleed-out, while preventing loss of life. There are approximately 120,000 pelvic fractures reported in the US annually and up to 15% of these are “open-book”. Open-book pelvic fractures are a significant source of blood loss and, if untreated, the survival rate is only about 15%. With its patented circumferential tightening mechanism, TPOD(R) is the only external fixation device shown in clinical studies to be equivalent to a surgical procedure in achieving stabilization, while also mitigating patient discomfort. Most of the US hospital customers purchase TPOD(R) directly, so that Pyng will also now have this customer base to which it can market FAST1(TM) directly. TPOD(R) is also used extensively by civilian first responders, especially in motor vehicle accidents; and by medics on battlefields, especially in incidents involving improvised explosive devices.
The MAT(R) tourniquet provides proven superior performance in terms of occlusion efficiency (cessation of blood loss), speed of application, and ease of use. MAT(R) consistently provides complete occlusion in about 50 seconds making it the most versatile and efficient tourniquet in the industry. It is the only tourniquet that meets all of the US DOD performance requirements, and provides proven and effective one-handed operation. MAT(R) has undergone rigorous testing by US military medical teams. The tests indicate that MAT(R) provides consistent superior occlusion efficacy, speed of application, ease of use and modulated constriction, which saves lives and limbs. MAT(R) is designed to be self-administered and is intended for use by individual soldiers and civilians, as well as medical personnel.
Initially developed for the US DOD, MAT(R) has been adopted by emergency first responders and law-enforcement agencies around the world. MAT’s design won the IDSA’s Gold Award for Best Medical Product Design of 2006 and has subsequently become a finalist in the highly prestigious INDEX Award 2007 for best medical product in the world in the last two years.
About Bio Cybernetics International
Bio Cybernetics International (BCI) is a United States-based medical products company that focuses on products in both the orthopedic and trauma areas. BCI utilizes proprietary patented technology to provide for superior product performance, while interfacing with patients when they are at their most vulnerable medical condition. Products are sold throughout the world to medical institutions that treat patients directly, as well as governments that supply medical products to military and civilian institutions. BCI has chosen to concentrate its efforts within the orthopedics field, which is the Company’s primary market interest.
About Pyng Medical Corp.
Pyng Medical Corp. is the developer and manufacturer of the proprietary, award-winning FAST1(TM) Intraosseous Infusion System. FAST1(TM) is the most rapid, reliable and safe alternative to conventional IV infusion providing lifesaving vascular access for fluid and drug resuscitation in shock and trauma victims. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from LifeSciences British Columbia for its sustained achievements in commercializing the Company’s proprietary FAST1(TM) IO System. The Company was also selected in the “2007 TSX Venture 50” Top 10 companies in Life Sciences based on solid financial metrics for the year ending December 31, 2006. With expanding markets in North America, Europe and Asia, the FAST1(TM) has worldwide application for use with hospitals, emergency medical services and military forces.
This news release contains certain “forward-looking statements” and “forward-looking information” which may include but is not limited to statements in respect of the proposed acquisition by Pyng. Words like “hope”, “believe”, “intend”, “may”, “expect”, “anticipate”, “plan”, “should”, “assume” and other similar expressions are forward looking statements that involve a number of risks and uncertainties. By their nature, forward looking statements involve numerous factors, assumptions and estimates. For a further description of the principal risks affecting Pyng, see Pyng’s regulatory filings at www.sedar.com. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward looking statements. Although Pyng has attempted to identify important risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed or implied in the forward looking statements, there may be other factors that cause actual results or events to differ from those expressed or implied in the forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and Pyng undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise after the date hereof, unless required by law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Pyng Medical Corp. David Christie (604) 303-7964 Website: www.pyng.com
SOURCE: Pyng Medical Corp.