Med-Design Gets $6 Million as Part of Agreement

Med-Design Corp. in Ventura, which designs safety medical needles, has received $6 million as part of its license and stock-purchase agreement with Becton Dickinson and Co., a medical technology company.

The agreement gives Becton Dickinson exclusive worldwide rights to manufacture and sell Med-Design’s retractable needles for blood collection and infusion therapy. The agreement also provides Becton Dickinson with options lasting one year on additional applications of Med-Design’s needle technology.

Under the terms of the agreement, Med-Design received an initial payment of $4.5 million and an equity investment of $1.5 million.

Med-Design also will receive royalty payments from Becton Dickinson’s sales of licensed products, and Becton Dickinson will be entitled to a seat on Med-Design’s board of directors.

“The receipt of $6 million assures the financial stability of the company well beyond the coming fiscal period and presents Med-Design with the opportunity to advance our research and development activities for other products,” said James M. Donegan, Med-Design chairman and chief executive officer.