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VeriChip Corporation Enters
Into Development and Supply Agreement with Medical Components, Inc.
Valued at More Than $3 Million
Upon Completion of New,
Smaller RFID Microchip and FDA Approval of Combined Device, VeriChip
to Supply Medcomp with RFID Microchips to Implant in Medcomp’s
Vascular Catheters
DELRAY BEACH, FL – March 18, 2009
-- VeriChip Corporation (NASDAQ:CHIP)
(“VeriChip”), a provider of radio frequency identification (RFID)
systems for healthcare and patient-related needs, announced today
that it has entered into a development and supply agreement with
Medical Components, Inc. (“Medcomp”), a leading global manufacturer
of vascular access catheters, to develop and manufacture a RFID
microchip for implantation into Medcomp’s vascular access medical
devices on an exclusive basis. The initial term
of the agreement is five years totaling more than $3.0 million over
the life of the agreement, assuming successful completion of the
development of the new, smaller microchip and Medcomp’s receipt of
approval from the U.S. Food and Drug Administration (“FDA”) of the
vascular port containing the microchip. VeriChip
will receive a product development fee for the new, smaller RFID
microchip, the development of which is expected to be completed
within 90 days. Additionally, Medcomp will buy scanners from
VeriChip for use by healthcare professionals nationwide in order to
identify a patient’s vascular port for correct medication dosage.
Scott R. Silverman, Chairman of
VeriChip, said, “This agreement with Medcomp is a validation of our
technology for healthcare applications above and beyond our core
market of patient identification. Not only will we be selling a
smaller version of our microchip, but we also expect to offer the
VeriMed™ Health Link patient identification service at a reduced
rate to all patients who receive a Medcomp vascular port.”
“We are confident we will complete
development of the new microchip, which is more than 30 percent
smaller than our existing microchip, in the very near future,
thereby enabling Medcomp to move forward with the FDA approval
process,” continued Silverman. “This is an important step forward
for our company and an exciting partnership.”
Timothy Schweikert, President of
Medcomp, said, “We believe this agreement with VeriChip will help to
further differentiate our product from our competitors, expanding
our market advantage. By affirmatively identifying the particular
type of vascular access device a patient has prior to treatment, we
are increasingly ensuring patient safety. Because both our vascular
catheter and VeriChip’s RFID microchip are already FDA-cleared
devices, we anticipate a smooth submission and approval process with
the FDA.”
About VeriChip Corporation
VeriChip Corporation,
headquartered in Delray
Beach, Florida,
has developed the VeriMed™ Health Link System for rapidly and
accurately identifying people who arrive in an emergency room and
are unable to communicate. This system uses the first
human-implantable passive RFID microchip, cleared for medical use in
October 2004 by the United States Food and Drug Administration. To
complement its healthcare division, VeriChip Corporation established
VeriGreen Energy Corporation in March 2009 to focus and invest in
the clean and alternative energy sector.
For more information on VeriChip,
please call 1-800-970-2447, or e-mail info@verichipcorp.com.
Additional information can be found online at
www.verichipcorp.com.
About Medcomp
Medcomp® develops, manufactures,
markets and supports cutting-edge vascular access devices and
accessories to meet the clinical needs of the medical industry,
particularly in the fields of interventional medicine and dialysis.
Through
innovations like the Tesio® and Split Cath III, Medcomp has set the
standard in for Dialysis and Venous Access Catheters.
Additional information can be
found online at
www.medcompnet.com
Statements about VeriChip’s future
expectations, including future revenues and earnings from the sale
of these smaller microchips to Medcomp, its ability to complete
development of the smaller microchip within the allotted time frame,
its ability to successfully manufacture the smaller microchip and
supply such microchip to Medcomp according to the terms of the
agreement, and Medcomp’s ability to receive FDA approval, and all
other statements in this press release other than historical facts
are “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and as that term is defined in the Private
Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties and are subject to change at any
time, and VeriChip’s actual results could differ materially from
expected results. Additional information about these and other
factors that could affect the Company’s business is set forth in the
Company’s various filings with the Securities and Exchange
Commission, including those set forth in the Company’s 10-K filed on
February 12, 2009, under the caption “Risk Factors.” The Company
undertakes no obligation to update or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this statement or to reflect the occurrence of
unanticipated events, except as required by law.
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CONTACTS:
VeriChip Corporation
Allison
Tomek
(561) 805-8008
atomek@verichipcorp.com
Medcomp
Michael Cellini
(800) 220-3791
mcellini@medcompnet.com
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