MedPro Safety Products to acquire product development rights for passive safety intravenous catheter

MedPro Safety Products, Inc. (OTCBB: MPSP), a leading developer of transformational technologies that enable safer medication delivery and blood collection, has agreed to acquire product development rights for a unique, fully passive safety intravenous catheter from a company owned by Hooman Asbaghi and Don Millerd. Mr. Asbaghi is the inventor of MedPro’s fully-passive phlebotomy collection devices, which include two versions of a safety blood collection holder and a safety blood collection set. In November 2009, Mr. Asbaghi entered into an exclusive agreement with MedPro to provide the Company with R&D, market research, product design and development, engineering and other product services. This acquisition provides MedPro with another addition to its proprietary portfolio of passive safety medical devices.

“When brought to the market, the Passive Safety IV Catheter is expected to be the only fully passive catheter sharp meeting a currently unmet need in intravenous infusion”

“When brought to the market, the Passive Safety IV Catheter is expected to be the only fully passive catheter sharp meeting a currently unmet need in intravenous infusion,” said Walter Weller, MedPro President and COO. “This device enables MedPro to address a new, significant market for our company, estimated at a minimum of 200 million units over the first five years. The Passive Safety IV Catheter broadens our product portfolio to nine systems, all of which are designed to provide healthcare providers with superior needlestick risk management through the use of products designed with passive safety features. We intend to sell the catheter through a major medical device manufacturer or distributor. We are currently in discussions with companies that are actively seeking new solutions for safety technology for the IV catheter market.”

Despite the prevalence of IV catheters with a safety feature currently in the marketplace, the latest device specific sharp object injury data revealed approximately one catheter needlestick per 125 census beds, which would equate to 5,000 to 6,000 annual injuries in hospital settings alone.

The cost for post-exposure testing and treatment is about $3,000, not to mention the personal and emotional ramifications to the healthcare worker. The Federal Needlestick and Prevention Act included regulatory requirements and stimulated substantial market demand for safety needle technologies, but needlestick injuries have not been eliminated since its passage.

MedPro’s portfolio of sharps employs only “fully passive” safety technology, meaning that the healthcare worker does not need to consciously deploy the sharp’s safety system, nor undergo any new training to effectively deploy the system. The needle remains protected before, during, and after use. The healthcare worker uses the MedPro safety sharp as she or he would any traditional sharp not equipped with a safety mechanism. When the MedPro safety system deploys entirely on its own, the used sharp is unable to stick another person.

MedPro agreed to pay $5 million for the device, 50% in cash and 50% in MedPro stock, in eight equal installments. The first installment is payable when MedPro finalizes financing for development and commercialization of the project, which would include construction of production lines and related expenses. The balance becomes payable over seven quarters after MedPro confirms the technology meets certain design and patentability criteria. The MedPro stock will be valued at the average closing trading price during a ten day period immediately before the initial payment. In addition, a continuing royalty will be paid on unit sales.