Perth, Mar 10, 2008 AEST (ABN Newswire) - Stirling Products Limited (ASX: STI) advises shareholders that it has signed a Term Sheet and Letter of Understanding with the company Equine Healthcare Limited, based in the United Kingdom, for the first option to license, manufacture and distribute its patented 'early detection device' for respiratory disorders. Stirling is pursuing worldwide rights to the device and believes that it could provide additional income to the company within the first year of the license.
Stirling CEO and Managing Director, Dr Calvin London indicated, "The device, which is a little bigger than a "Blackberry" unit, has the ability to detect early changes in the gas composition exhaled by humans and animals, thus providing a quick and economical way to detect respiratory disorders. The device is being commercialised for both human and veterinary applications, Stirling having an interest in the veterinary side only."
A number of different animals experience respiratory disorders with the most important occurring in performance horses, livestock animals such as cattle, or in companion cats and dogs. The device has been tested and shown to work in detecting respiratory problems in horses and in cats as well as humans.
"It would have been good to have this device available last year when Australia suffered its epidemic of horse flu," commented Dr London. "We believe that the device could have assisted greatly in the early detection of horses that were affected by this outbreak," he added.
In principle the device will be priced such that veterinarians can offer an on-site service to detect early signs of respiratory disorders or for large racing stables to conduct routine testing of horses prior to and after heavy exercise such as competition racing.
"We see this opportunity as being a good example of where Stirling can acquire intellectual property with worldwide application, but with low up-front costs where the investment return for the inventors is based on royalty payments from the performance of the product," indicated Dr London. "We have an ideal vehicle to launch this product through our joint venture in Europe (Pulmovet ApS), which has a focus on equine respiratory disorders while developing the opportunities for other animal applications through the parent company Stirling Products."
The device is non-invasive and, as for a large number of devices currently available, does not need registration in most major countries. As such, it offers a very short time to market. The device will be sold with the compulsory CE mark required in Europe as an assurance of its quality.
Dr London indicated that "While we are still to go though some due diligence to reassure ourselves of the potential and manufacturing dynamics (which will be outsourced to contract facilities), the licensee estimates that worldwide markets could generate sales in the order of $3 million climbing to almost $20 million by the third full year of global sales. It's an exciting opportunity and fits with our strategy to find complementary opportunities that will generate revenue for the company and permit us to develop our various technology platforms in a manner that is less dependent on external funding."
The Agreement covers a period of 120 days review during which time a formal licensing agreement will be drafted.
About Pulmovet ApS:
Pulmovet ApS is a joint venture between Stirling and the Danish company Equine HealthCare ApS. Pulmovet has already established a presence in the treatment of horse respiratory disorders through the worldwide use of the EquineHaler(tm). The newly formed partnership (Pulmovet) will develop a range of drug/device combinations for international markets to treat equine respiratory disorders commencing with the use of R- salbutamol and the Equidel(tm) delivery device.
Contact
Dr London
TEL: +61-8-9480-1480
MOB: +61-400-204616
WEB: www.stirlingproducts.net.
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