SurModics Inc (SRDX)

[Democritus_of_Abdera]

Re: Ownership of Novocell’s Encapsulation process...

Bridge, I believe that the conference call you are referencing is the Q2 2006 Earnings Call of 4/19/2006. In that conference call, Bruce Barclay made the following statement in his prepared remarks: “We are pleased with the progress Novocell continues to make with our encapsulation technology and we believe that potential of the diabetes market continues to make this an attractive opportunity for SurModics.”

And in the question and answer session, the following exchange took place:

<Q – Richard Rinkoff>: Have you signed a licensing agreement with them (i.e. Novocell) if and when they ever have a product in the market?

<A>: Yes, we do have a license for the use of our encapsulation technology on their product. And it’s much better than a CYPHER royalty rate.

As you may recall, Foolish and Aslan had an informative interchange concerning the ambiguity regarding SurModics' exact contribution to the encapsulation technology last summer (see #msg-21315977, #msg-21326063, #msg-21332011, #msg-21348258, and #msg-21356674).