daytrading dec 2 morning, page-10

Exciting news for SBN, this should result in a nice little rerating of them:
The Directors of Sun Biomedical Limited (ASX: SBN or the “Company”) advise that the Company has entered into an exclusivity arrangement to negotiate with Parvulus Medical SAS to license technology owned by its subsidiary, Parvulus Suisse SA for the Asia Pacific region or alternatively, to acquire all the issued share capital of Parvulus SA (“Parvulus”).

Parvulus is the owner of medical technology for the manufacturing of a biodegradable device used in heart valve repair surgery. The Parvulus Intra Annular Ring (the “Technology”) not only has significant advantages for adult patients, but most importantly it is the only device on the market approved for paediatric patients, as it preserves growth of the heart valve’s annulus. According to industry estimates, there are 158,000 paediatric procedures performed annually with nearly 100,000 of those completed in the Asia Pacific region. This translates into an estimated A$100 million sales market in the Asia Pacific region alone.

In clinical testing, the Technology has shown itself to be highly effective and safe when compared to other valve repair options and also resulted in minimal need for valve re-operation or replacement. The Intra Annular Ring has being granted a CE mark in 2011 and has a defined regulatory pathway in other territories including Australia, Asia and North America.

Both parties have agreed to an exclusive period commencing today and concluding on 15 January 2014 to complete technical and legal due diligence and agree commercial terms on the proposed license agreement or acquisition.
Chairman Howard Digby said “This potential transaction represents an exciting opportunity for our Company to move into the therapeutic space and is in line with our corporate strategy. Our objective is to create a diversified portfolio of medical devices and therapeutics that will create shareholders value and reduce the risks for the company.”