Breast ultrasound imaging developer TechniScan has signed agreements for manufacturing and use of trademarks with Womens3D.
The agreements follow a product development deal signed between the two companies in January. In the January deal, the companies agreed to jointly develop a specialized version of TechniScan's Warm Bath Ultrasound (WBU) system specifically for Womens3D's market of women-specific health practices, such as ob/gyn and general practice offices.
Under the terms of the manufacturing agreement, TechniScan will be the exclusive manufacturer and supplier of the products, while Womens3D will hold a license to sell to its target market, according to TechniScan. The license becomes exclusive upon certain conditions being met, including payment of at least $1.5 million to TechniScan in connection with the initial design and development of the product.
Womens3D hasalso committed to purchasing at least $10 million of TechniScan's products during the 36 months following clearance by the U.S. Food and Drug Administration (FDA). TechniScan's WBU imaging device is currently restricted to investigational use, the company said.
The transaction includes TechniScan receiving shares of Womens3D common stock equal to 20% of the current capitalization of Womens3D.
