Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

November 10, 2006 07:00 ET

Covalon Receives High Value US Reimbursement Codes for its Wound Dressings

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 2006) - Covalon Technologies Ltd. (the "Corporation" or "Covalon") (TSX VENTURE:COV) announced that it has received important US Medicare HCPCS reimbursement codes for its ColActive and ColActiveAg wound dressings. The Centers for Medicare & Medicaid Services of the United States have approved Covalon's dressings for reimbursement as collagen dressings. The Statistical Durable Medical Equipment Regional Carrier has determined that the Medicare GCPCS code to bill the four Durable Medical Equipment Regional Carriers (DMERCs) is A6021 Collagen dressing, pad size of 16 square inches or less, each.

Medicare and Medicaid combine for over US$600 billion in expenditures and insure more than 100 million Americans (according to CBO March 2005 Medicaid Baseline; CMS, Office of the Actuary, 2005). Dr. DiCosmo, Covalon CEO, stated that; "the reimbursement codes received are significant achievements in commercialization for our wound dressings; the collagen code is a high re-imbursement and high frequency of dressing change category. The Company can now sell ColActive and ColActiveAg to the Medicare/Medicaid insurance markets - the two largest health care insurers in the US."

Covalon Technologies Ltd. is a developer of advanced medical products which has patented therapeutic biomaterials for wound care and surgical applications and coatings for medical devices. 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. A variety of applications for this technology have been identified and specific products have been developed. These products feature solutions to many of the problems caused by the material properties of the medical devices currently offered by most manufacturers and suppliers.

This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)
    Website: www.covalon.com