Recent Development – Boeing License
Deal Terms
A License Agreement and a Teaming Agreement with The
Boeing Company
Boeing becomes the exclusive manufacturer and distributor
of M-BAND units (in North America – except
SAIC contract with DTRA) – Exclusive for the $3.1B BioWatch Gen-3 contract, expected beginning in 2013
PositiveID is exclusive provider of
monthly
reagents/assays to Boeing for any M-BAND units built and sold
Boeing pays PositiveID $2.5 million license fee in December
2012-April 2013
Why It Is Important
PositiveID teams with Boeing, a Fortune 50 company, with significant presence in DHS and DoD, and
experience in large system implementation
PositiveID maintains position as the exclusive provider of reagents and assays
PositiveID maintains full rights to M-BAND and monthly reagents/assays in SAIC/DTRA contract, Europe,
Asia, Middle East
Recurring revenue from reagents/assays will provide PositiveID a long-term annuity
PositiveID Market Opportunity
BioWatch Gen-3 procurement anticipates 2,500 units to be
deployed over 2013-2017; the 2,500 units will
require monthly reagent/assay replacement (the “razor blade”)
2,500 units will provide recurring revenue base of between $90-120M revenue annually at 15-20% margins
The U.S. market non-BioWatch (bases and embassies) should be of like size to BioWatch
Europe/Asia/Middle East markets could be significantly larger than U.S. market
