KOOL has phased out production of its CryoSeal wound care product line and license the product to a Japanese distributor, Asahi Kasei Kurary Medical Co.
KOOL will receive $1M this month and continue to supply CryoSeal while Asahi ramps up production facilities and regulatory approvals in Japan. ThermoGenesis will provide the CryoSeal Fibrin Sealant System for Asahi to distribute in Japan and other Pacific Rim countries for 30 months, at which time Asahi will take over manufacturing. KOOL will receive royalty payments on all CryoSeal products Asahi manufactures after the 30 months.
Asahi has the option to acquire the CryoSeal line and patent rights any time in the next 5 years. KOOL has enough CryoSeal inventory that it won’t need to engage in any “meaningful” manufacturing in the next 30 months.
The divestiture of CryoSeal is part of a long-term strategy to focus on the development of enabling technologies for the stem cell regenerative medicine market.