Edwards Lifesciences and DexCom to Develop Continuous Glucose Monitoring Products for Hospital Market
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IRVINE, CA and SAN DIEGO, CA, Nov 10 (MARKET WIRE) -- Edwards Lifesciences Corporation (NYSE: EW), a global leader in the monitoring of critically ill patients, and DexCom, Inc. (NASDAQ: DXCM), a developer and marketer of home-based continuous glucose monitoring systems for patients with diabetes, have entered into a definitive collaboration agreement to develop products for continuously monitoring blood glucose levels in patients hospitalized for a variety of conditions. The agreement provides Edwards with an exclusive license to all of DexCom's applicable intellectual property. Under the terms of the agreement, Edwards will pay DexCom an upfront licensing and collaboration fee of $13 million in cash, resulting in a nonrecurring charge for Edwards in the fourth quarter of 2008. Edwards will also pay up to $24 million over the next three years in product development costs and regulatory approval milestones. Edwards believes that the R&D component of these payments will be approximately $7 million in 2009. In addition, DexCom will receive either a profit-sharing payment of ten percent or royalty of up to six percent of commercial sales. Edwards will be responsible for global sales and marketing, which is expected to begin in 2010, and DexCom will be responsible for initial manufacturing. "There is growing evidence that closely monitoring glucose levels in critically ill patients can positively impact patient care and outcomes, however, existing intermittent monitoring methods do not make this practical for hospitals to employ on a widespread basis. Edwards is excited to work with DexCom to develop technology that allows clinicians to better maintain tight glycemic control of patients in an operating room or intensive care unit setting," said Carlyn Solomon, Edwards' corporate vice president, critical care and vascular. "This collaboration combines DexCom's diagnostic testing and sensor technology experience with Edwards' leadership in monitoring critically ill patients and knowledge of the critical care environment." "DexCom looks forward to working with Edwards to further develop this continuous glucose sensing technology for use in a hospital setting," said Terrance H. Gregg, DexCom's president and CEO. "We are confident in the ability of this technology to provide new opportunities to serve a large number of critically ill diabetic and non-diabetic patients. We believe that collaborating with Edwards can extend our portfolio of pioneering glucose monitoring technologies by offering clinicians a device designed to meet the needs of a critical care patient." Tight glycemic control is often implemented in a hospital's critical care setting to stabilize and maintain a patient's blood glucose levels within a specified range. Studies show that when a patient's blood glucose level is high for prolonged periods, recovery from surgery takes longer and the risk of infection increases. Currently, tight glycemic control is achieved by obtaining samples every 30 to 60 minutes, however this testing practice may be too intermittent and cumbersome. The development of a method for continuous glucose monitoring via an indwelling sensor would enable clinicians to be more effective in implementing tight glycemic control and provide for better accuracy in monitoring and controlling patients' blood glucose levels. About Edwards Lifesciences Edwards Lifesciences is the global leader in the science of heart valves and hemodynamic monitoring. Headquartered in Irvine, Calif., Edwards treats advanced cardiovascular disease with its market-leading heart valve therapies, and critical care and vascular technologies. In 2008, Edwards celebrates 50 years of partnering with clinicians to develop life-saving innovations. The company's global brands, which are sold in approximately 100 countries, include CardioVations, Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, PERIMOUNT Magna and Swan-Ganz. Additional company information can be found at http://www.edwards.com. About DexCom DexCom, Inc., headquartered in San Diego, Calif., is an innovative company focused on pioneering ground-breaking continuous glucose monitoring technologies for improving the health and lives of people with diabetes. DexCom has developed the SEVEN System, a Continuous Glucose Monitoring (CGM) device, which includes the SEVEN Sensor, Transmitter, and Receiver. Published clinical evidence continues to support the value of CGM and demonstrates dramatic improvements in glucose control. Additional company information can be found at http://www.dexcom.com. This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, but are not limited to, the ability of this transaction to generate sales and impact earnings and, more generally, the ability to consummate targeted technology investments and acquisitions. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements are detailed in the company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2007. Edwards is a trademark of Edwards Lifesciences Corporation. Edwards Lifesciences, the stylized E logo, Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, Magna, PERIMOUNT Magna and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the United States Patent and Trademark Office. CardioVations is a trademark of Edwards Lifesciences AG and is registered in the United States Patent and Trademark Office. DexCom and SEVEN are trademarks of DexCom, Inc. Edwards Lifesciences Media Contact: Sarah Huoh 949-250-5070 Investor Contact: David K. Erickson 949-250-6826 DexCom Media/Investor Contact: Steven R. Pacelli 858-200-0200 Copyright 2008, Market Wire, All rights reserved. -0-
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