Ichor Medical Systems Settlement Agreement Approved
SAN DIEGO, June 28, 2005 - Ichor Medical Systems, Inc. announced today that in the bankruptcy case of Cyto Pulse Sciences, Inc., in which Ichor is the largest creditor, the United States Bankruptcy Court for the District of Maryland has approved a settlement agreement between Ichor Medical Systems, Inc. and Cyto Pulse Sciences, Inc. The court also confirmed Ichor’s $19.2 million allowed claim against Cyto Pulse. Under the terms of the agreement, Ichor will receive cash payments totaling $3.25 million, and anti-dilutive preferred stock representing 20% of the equity of the reorganized Cyto Pulse. To secure payment of the $3.25 million, the agreement provides Ichor with a security interest in all of Cyto Pulse’s assets.
In 2003, at the conclusion of a three-week trial, a jury found that Cyto Pulse had misappropriated certain Ichor intellectual property and awarded Ichor $13.9 million in damages. That judgment led the court to grant Ichor an equitable assignment of all the intellectual property rights at issue in the case. Cyto Pulse incorporated the misappropriated technology into their product, PA-201, a programmable pulse switch. Subsequently, Cyto Pulse filed for relief under Chapter 11 of the U.S. Bankruptcy Code.
“We are pleased that the final resolution of this dispute returns to Ichor certain intellectual property rights and provides the means for a recovery on the monetary damages,“ said Robert Bernard, CEO of Ichor Medical Systems. “To maintain our rightful ownership and exclusive control over the technology, it was necessary to pursue this matter to its ultimate conclusion. We are continuing to make rapid progress toward the clinical development and commercialization of our TriGrid™ Delivery System for the intracellular delivery of biologic compounds.”
Ichor Medical Systems, Inc. is a private company developing products based on the in vivo application of electroporation. Ichor’s proprietary TriGrid™ Delivery System uses electrical fields to increase DNA drug delivery efficiency by up to 1,000 fold. This approach employs a device-based system to enhance the delivery of virtually any DNA vaccine or therapeutic protein. By enabling the effective administration of this class of drugs, the company will leverage the substantial investments made by others in the DNA drug sector to develop high-margin integrated products. The company’s initial development efforts are focused on the integration of the TriGrid™ Delivery System with existing DNA drugs for which initial safety and efficacy have been characterized.
For additional information, call (858) 550-2022 or visit www.ichorms.com.