Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

August 17, 2005 13:44 ET

Covalon and Medline Industries apply for FDA approval for Covalon's silver ion antimicrobial coating

MISSISSAUGA, ONTARIO--(CCNMatthews - Aug. 17, 2005) - Covalon Technologies Ltd. (Covalon) (TSX VENTURE:COV) is extremely pleased to announce that Medline Industries Inc. USA has made a 510(k) application for FDA approval of Covalon's antimicrobial silver coating for medical devices.

Covalon CEO, Dr. Frank DiCosmo said: "The FDA application is an extremely important milestone in the commercialization of Covalon's covalent coating technology for medical devices. A silver ion releasing coating is only one example of such a device. The Covalon coating allows for site specific delivery of various therapeutics used in many combination medical devices. Initially Covalon's proprietary covalent coating technology will be combined with silver to offer antimicrobial protection on various medical devices. Covalon looks forward to commercializing its coating on a number of Medline products."

The combination device market segment is estimated to grow from current estimate markets of US$5.9 Billion and is expected to show a moderate compound annual rate of 10% through 2009. By 2009, the market will reach approximately $9.5 Billion worldwide with a majority of these revenues from drug-eluting products (Navigant Consulting Inc. 2003).

Medline's primary mission is to provide quality products and cost containment solutions to health care providers while enhancing the quality of patient care. Medline was founded in 1966. Since then, Medline has grown into America's largest privately-held national manufacturer and distributor of health care supplies and services. With six manufacturing facilities in North America and over 25 joint venture manufacturing plants worldwide, Medline manufactures many of the 100,000 products it sells and delivers direct to the marketplace. This direct approach eliminates the middleman, allowing Medline to offer highly competitive prices and flexible financing on its broad product line. Medline sells in every state and in more than 20 countries. The company maintains 27 distribution centers to deliver products to its health care customers where and when they need them. Medline provides products and services to the entire continuum of care, including hospitals, extended care facilities, surgery centers, commercial laundries, home care dealers, home care agencies, physician offices and other alternate care sites.

Through its more than 700 dedicated sales representatives, Medline has earned the reputation as one of the top sales and customer service companies in the country. Stephens Inc.'s annual Nursing Home Study ranked Medline the "best liked" supplier and most "on-time" in its deliveries. And, Selling Power magazine ranked Medline among the best sales forces in the country in its "World Class Sales" study.

Covalon Technologies Ltd. is a company with advanced medical products, that has developed and patented advanced therapeutic biomaterials for wound care and surgical applications and coatings. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that are applied to many medical devices to treat many critical conditions. A variety of applications for these technologies have been identified and specific products have been developed. The products offer features and benefits providing solutions to many of the problems caused by current devices and their material properties which are used by most medical device manufacturers and suppliers. The problems include infection, poor biocompatibility, and microbial attachment.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    Chief Financial Officer
    (905) 568-8400
    (905) 568-5200 (FAX)
    www.covalon.com