Med-Design, N.J. Firm Reach Agreement

Med-Design Corp. in Ventura, which designs safety medical needles, has signed licensing, option and equity agreements with Becton Dickinson and Co., a medical technology firm based in Franklin Lakes, N.J.

The agreements, which involve a multimillion-dollar up-front payment to Med-Design plus continuing royalties, grant Becton Dickinson the exclusive right to use Med-Design’s technology for certain applications.

In addition, Becton Dickinson is making a $1.5-million equity investment in Med-Design through the purchase of 300,000 shares of preferred stock, which are convertible to common shares at $5 per share. Becton Dickinson also will have a seat on Med-Design’s board of directors.

“Becton Dickinson is exactly the kind of partner a company like ours looks for, because it understands the value of our advanced designs and is committed to putting them in the hands of doctors and nurses,” said James M. Donegan, Med-Design chairman and chief executive officer. “We’ve worked hard to make the best retractable technology available, and Becton Dickinson--with over 10 years of dedication to advanced protection products--is the ideal manufacturer to bring our designs to market.”

In addition to the products included in the agreement, Med-Design has several other uses of its retractable safety needles, which are designed to allow health care workers to perform a wide range of medical procedures at greatly reduced exposure to accidental needle stick injuries.