PPG.L Regulatory News (PPG)

19 Oct 2009 07:00



Development Agreement for pH measurement technology signed

IPSO Ventures plc ("IPSO"), the creator of commercial value from technology, is pleased to announce that its portfolio company, Medermica Limited ("Medermica"), has signed an agreement to develop its technology, a pH measuring device, to the point at which it can be commercialised.

The agreement has been signed by Medermica with Dr. Peter Knox and DSPI Limited, a company controlled by Dr. Knox (together "the Developers"). 

Under the agreement, the Developers will provide to Medermica, at their own cost and risk, the expertise, equipment and materials to develop the consumable and electronic components of the pH measuring device and to create a number of robust prototype devices which are capable of being demonstrated to potential licensing partners. 

The Developers will, as compensation, receive a royalty based upon a percentage of the revenue Medermica receives from the pH measuring device during the first 10 years following successful commercialisation. The royalty will be 30% of the first £1m of revenue; 7.5% of all revenues between £1m and £5m; and 2.5% of all revenues over £5m until expiry of the royalty term.

Dr. Knox is a non-executive director of IPSO and chairman of Medermica. In these circumstances, and due to Medermica being accounted for as a subsidiary of IPSO, the agreement is deemed to be with a related party. Dr. Knox has therefore not been treated as independent for the purposes of considering the arrangement. The remaining directors of IPSO consider, having consulted with IPSO's nominated adviser Ambrian Partners Limited, that the terms of the arrangement are fair and reasonable insofar as IPSO's shareholders are concerned.

Information on Medermica

Medermica's innovative pH measuring device uses ultra small volumes of liquid and is cheap, accurate, rapid and disposable. This valuable technology is relevant to a wide range of commercial, industrial and medical applications, including pharmaceutical manufacturing, food processing and most aspects of biomedical research and development. The current traditional pH measuring techniques, which have not altered significantly in many decades, necessitate constant calibration and maintenance of equipment and require significant volumes for a single measurement.

Medermica is a technology development company, focused on diagnostic and sensor technologies for laboratory or healthcare applications. It was created by IPSO in May 2006 to progress certain sensor technologies which have been developed by Dr. Danny O'Hare, Reader in Sensor Research in the Department of Bioengineering at Imperial College. Imperial Innovations plc is also a shareholder in Medermica.

Company description:

IPSO creates commercial value from technology and its business model is entirely demand driven. It works closely with its industrial collaborators to identify the demand for new, innovative technologies and then, through its strong relationships with research institutions, sources technologies which could meet those needs. Much of this technology requires considerable further work by IPSO before it can be sold to industry as a developed product. IPSO creates businesses and provides expertise, strategic direction, human and seed capital, as well as corporate finance advice. 

For industrial collaborators, IPSO provides a mechanism to identify and develop technologies which could be of significant value to their businesses, and removes the risk to them of acquiring raw, unproven and undeveloped technology. 

For research institutions, IPSO provides greater certainty that their technology will find commercial success.