From BioHealth Investor
by H.S. Ayoub
BioHealth Investor.com
BioLase Technology (BLTI) announced early Thursday that the company had signed a definitive agreement with Proctor & Gamble (PG).
Under the terms of the agreement PG will have access to BioLase’s dental laser intellectual property for the development of certain consumer products. BioLase will receive loyalties and quarterly payments of $250,000.
A binding agreement was agreed upon back in June, after which BioLase collected an upfront payment of $3 million.
So what exactly could PG use this technology for? While financial details of the agreement will be more apparent in a future filing with the SEC, any products developed by PG using the technology might not be announced for some time. Could consumers be buying an at-home dental laser whitening system in the future?
As for BioLase’s end of the deal it is difficult to critique without a hint at how much the royalties could sum up to. Looking at the upfront payment of $3 million, and the quarterly payments of $250,000 alone one would rebuff the deal. The company posted losses of $17 million in 2005 and $23 million in 2004.
http://www.biohealthinvestor.com/
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