Exclusive License Agreement With Spinal Resources Inc. Announced by Ozop Surgical Corp. (OZSC)
WEST PALM BEACH, FL, Aug 26, 2019 (GLOBE NEWSWIRE via COMTEX) -- Agreement Gives Ozop Immediate Revenue Recognition, Platform for Growth, Pathway to Operating Profit with an Option to Purchase
WEST PALM BEACH, FL, Aug. 26, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - Ozop Surgical Corp. (otcqb:OZSC), a provider of premium surgical devices in the rapidly growing field of minimally invasive spine surgery ("Ozop" or the "Company"), today announced that it has entered into an Exclusive License Agreement (the "License Agreement") with Spinal Resources, Inc. ("SRI"), that enables Ozop to recognize immediate revenues for the sales of SRI product. Ozop expects to achieve a $2M per year run rate of high margin sales within the first 90 days. Under the arrangement, Spinal Resources will continue to market the Swedge platform along with the existing portfolio to existing US and International customers. Ozop will purchase all existing inventory of SRI instruments and implants and will utilize SRI as a distributor.
The parties have also agreed for an Ozop option to purchase SRI, whereby under certain conditions, any license fees, inventory purchases and other costs incurred by Ozop could be applied to the purchase price. Founded in 2005, SRI, a Florida based company, engineered a unique line of patented spinal and cervical fixation systems for the surgical repair and reconstruction of debilitating spinal conditions.
The exclusive License Agreement allows Ozop to sell SRI's Swedge (patented, FDA approved pedicle screw system) technology and patent pending transition rod which has been shown to reduce contact pressure and stress shielding in the spine along with a unique pathway into the deformity market. OZOP will also gain access to a full product portfolio including 3D-printed, Peek and Carbon Fiber technology products.
OZOP will be able to access the SRI network of distributors and hospital contracts through SRI whereby the OZOP product portfolio can be distributed along SRI branded product, with access to the existing and future distribution base. With its relationships with distributors outside of the SRI network, Ozop immediately plans to be able to add additional sales of SRI product, giving the Company a clear path to operating profit. As Ozop completes their development of their expandable cage in 2020, and other in development products, it would be a natural fit for many of the existing distributors to sell these Ozop products thru the existing SRI contracts as well as new contracts being immediately sought.
An additional benefit is OZOP will be able to reduce planned costs based by utilizing the SRI infrastructure, specifically, mandated FDA quality and inventory control standards and systems.