Cannington-based technology developer QRSciences Holdings Ltd has acquired an option to purchase 14 patent families linked to the Quadrupole Resonance technology.
Cannington-based technology developer QRSciences Holdings Ltd has acquired an option to purchase 14 patent families linked to the Quadrupole Resonance technology.
The option agreement is with London-based medical innovations company BTG International Ltd, QRSciences' third largest shareholder.
The company said it would become the owner of the world's largest and most comprehensive IP portfolio in the field of Quadrupole Resonance following acquisition of the patents.
In January the company won a contract with Australian Customs Service for work on an advanced weapon detection system using the Quadrupole Resonance technology.
QRSciences believe the contract would bring at least $2.5 million in sales revenue to the company over the next 18 months.
The detection system will be used for international mail and package inspection and represents a new revenue stream for the company.
The new system will allow for automated detection assisting the operator in their decision making process. Development of the system has been funded in part by a $2.8 million federal government innovation grant.
Quadrupole Resonance uses radio waves to identify the chemical composition of a range of crystalline compounds including those present in a number of explosives and narcotics.
Below is the full announcement:
Advanced technology developer, QRSciences (ASX: QRS), has taken a major step in an effort to build upon its core asset by acquiring an option to purchase 14 patent families linked to the emerging technology Quadrupole Resonance (QR).
QR uses radio waves to identify the chemical composition of a range of crystalline compounds including those present in a number of explosives and narcotics.
QRS has positioned itself to become a toll-booth for QR commercialisation efforts in several key markets around the world, including the United States, Canada, Israel, the United Kingdom, Western Europe, Australia and parts of Asia.
QRS presently licenses QR technology to Rapiscan, L-3 and Lockheed Martin for use in the Homeland Security market and is in ongoing negotiations to extend licensing arrangements to other customers and commercial enterprises practicing QR in various fields.
The option agreement is with BTG International Limited (LSE: BGC), a London-based medical innovations company and QRSciences' third largest shareholder. Following an acquisition of the patents QRS would become the owner of the world's largest and most comprehensive IP portfolio in the field of QR.
Louise Makin, BTG's Chief Executive Officer, said:
"We believe QRSciences is in the best position to maximize revenues from these assets over the longer term by selling and continuing to develop products and licensing third parties."
Kevin Russeth, QRSciences' Chief Executive Officer, added:
"The BTG portfolio is a core asset in the QR landscape and ownership rights put us in a significantly stronger commercial position than we would have with similar licensing and leasing arrangements."
"The option gives QRSciences and our customers greater flexibility in the commercial marketplace and an opportunity to create a new revenue stream from licensing the BTG portfolio direct. Ultimately a value building exercise for shareholders."
Under the agreement with BTG, QRSciences will make an immediate payment of US $0.5 million and, if the option is exercised, will add 14 core patent families to its existing proprietary portfolio of 19 patents and patent applications giving it 33 patents and patent applications in total. The combined portfolio will constitute the largest and most comprehensive portfolio in this field.
Developed over the past 15 years at King's College London, BTG's 14 patent families are complementary to QRSciences' existing QR patents. In 2002, BTG granted QRSciences a worldwide exclusive license to the patents in the area of explosive and narcotic detection. QRS continues to maintain that license.
QRSciences along with General Electric's business unit, Quantum Magnetics, are the industry leaders in QR (also known as NQR and Zero-Field NMR) based explosive detection. Both organizations are actively developing commercial equipment and technology and have undergone testing and evaluation by regulators around the world including the U.S. Transportation Security Administration, an agency of the U.S. Department of Homeland Security.
Merck Sharp Dohme, AstraZeneca, Dupont, SpinLock, the U.S. Naval Research Laboratory, U.S. Department of Defence "DOD", U.K. Defence Science & Technology Laboratory "DSTL" and a handful of universities, including Penn State University and King's College London and privately funded research groups around the world in Russia, Slovenia, China and Argentina are also conducting research in the area.
QRSciences' option will expire late in the first quarter of 2006 with the remaining terms of the option arrangement remaining confidential and commercially sensitive. The Company will continue to update the market as and when developments occur.
