Med-Design Makes Deal With Becton on Safety Syringe Products

Med-Design Corp. in Ventura, which makes safety needle products for medical use, has signed an agreement giving Becton Dickinson a worldwide exclusive license to utilize Med-Design’s patent rights and know-how in the manufacture and sale of safety syringe products.

Med-Design will receive an up-front payment of $4 million, $1.5 million of which was recognized in the first quarter, with the remaining $2.5 million to be recognized this quarter. The company will receive royalty payments on all spring-based retracting hypodermic syringes sold by Becton Dickinson.

“In addition to receiving royalty revenues from sales of the 11 products licensed to Becton Dickinson, Med-Design expects to generate additional up-front and royalty revenues from the remaining 11 safety needle products currently being marketed to potential partners,” said James Donegan, Med-Design chairman and chief executive. “Med-Design will focus on licensing these ‘pipeline’ products to the dominant industry leaders for each of these markets.”