Biocompatibles UK Ltd signed a distribution agreement with Terumo Europe NV for its embolic product, used by interventional radiologists to block blood flow to tumours or vascular malformations.

Under the terms of the agreement, Terumo will become the exclusive distributor for the product,

Biocompatibles UK is a subsidiary of Biocompatibles International plc, while Terumo Europe is an affiliate of medical technology company Terumo Corp, headquartered in Japan.

Biocompatibles licenses Bead Block from BioCure Inc. The product is made from polyvinyl alcohol (PVA), an established material in embolization therapy. It is a precisely calibrated, compressible, visibility-tinted microsphere.

BioCure, based in Georgia, USA, is a private medical device company spun off from the CibaVision subsidiary of Novartis.

Embolization therapy can be used to treat conditions such as uterine fibroids, for which hysterectomies are often performed. This procedure emerged as a minimally invasive alternative to hysterectomy in the mid-1990s.

The 2002 embolization therapy market worldwide is estimated to be worth some US$25 million, according to Biocompatibles.

The company also has development programmes underway for embolic materials using its proprietary phosphorylcholine (PC) technology, including an option for localized drug delivery. This technology has been incorporated into novel polymers which reduce the body's response to foreign materials. They have also shown potential as carriers for therapeutic agents.

In related news, Biocompatibles International plc said it reached a settlement with Isostent LLC. The settlement agreement is subject to the determination by the Court of the State of California, Santa Clara, USA, that it is a good faith settlement.

However, if the California Court does not make such a determination, the settlement agreement will be null and void.

Any return of capital would be subject to shareholder approval and confirmation of the High Court of Justice in England and Wales, said the Chief Executive Officer of Biocompatibles, Crispin Simon.

The action was brought in March 2002 by the plaintiff, Isostent, against the LPL and the Divysio Parties, as well as Biocompatibles and its subsidiary, Biocompatibles Cardiovascular Ireland Limited, now owned by Abbott Laboratories.

For further information, contact: Crispin Simon, Chief Executive, Biocompatibles UK Ltd, Chapman House, Farnham Business Park, Weydon Lane, Farnham, Surrey GU9 8QL, UK; tel: +44-1252-732-732; fax: +44-1252-732-777, Internet address: www.biocompatibles.com