Optiscan is pleased to announce the outcome of a review of the...

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Optiscan is pleased to announce the outcome of a review of the agreement with Carl Zeiss Meditec (CZM).
The collaboration is now well advanced and focused on addressing such issues as regulatory clearance and design improvements. The detail in these issues has been the subject of extensive discussions over recent months and several important positions have now been agreed upon.
While specific details of the agreement are confidential, CZM have agreed to new commercial terms, the key material terms of which are:
• CZM will make payments for additional engineering works as required;
• CZM will have joint ownership of the sheath (sterility barrier) in their fields of application, will assume responsibility for regulatory approval and has agreed to a royalty model with Optiscan which will provide revenues over the lifetime of the product (Optiscan retains all sheath rights outside of the CZM fields of application);
• CZM will assume responsibilities that will relieve Optiscan of costs in the order of $0.75 million relating to regulatory and legal issues;
• Optiscan will supply further systems to CZM.
These new arrangements are expected to generate cash flows to Optiscan for both the supply of services and instruments in excess of $2.2 million1 by the end of calendar 2016, which, when combined with the costs savings will result in a net cash benefit of $3 million1 over that period. In addition, a final licence payment of $160,0001 will be paid by CZM later in the project.
A consequence of these changes is that control of the timing of some of the remaining processes will pass to CZM. This is consistent with the current stage of the collaboration.
Executive Director Peter Delaney said "We are very pleased to have enhanced the collaboration agreement with our partner Carl Zeiss Meditec and see this as an important milestone, setting the course for possible commercial supply."