Short of announcing FDA approval for AMIC’s brachytherapy products, I believe the PR last week is probably the most exciting news AMIC could reasonably expect to receive for its future prospects. Battelle Memorial Institute – the extremely highly regarded scientific and medical research institution with 22,000 employees, global operations and last year revenues exceeding $6.2 billion, has acquired about a 10% interest in AMIC.
Battelle developed the underlying patents for AMIC’s brachytherapy products and has partnered with AMIC on several research assignments.
By taking this interest in AMIC, Battelle:
1. Marries a significant equity interest to its patent license, re-emphasizing Battelle’s collaboration with AMIC to support the brachytherapy products as a break-through in treating cancer;
2. Sends an unmistakable message to the FDA, regulators worldwide and potential customers that AMIC is not alone, but, rather, has the support of what is probably the world’s leading non-profit scientific and medical research institute. I believe that is the most powerful endorsement AMIC could ever hope to obtain; and
3. Improves AMIC’s balance sheet by converting payables and costs associated with Battelle’s support to an equity
Google Battelle. If you don’t know what Battelle is, this news may seem good but not awesome. But if, like the regulators AMIC must work with and the potential licensees and business partners AMIC will work with worldwide, you learn about what Battelle is to the science and medical communities, then you will understand why I see this news as so significant.