Stonebridge Technology Associates Advises Verax Biomedical, Inc. On Distribution Agreement with Abbott Laboratories

August 10, 2006 - Stonebridge Technology Associates ("Stonebridge") announced today that it acted as financial advisor to Verax Biomedical, Inc. in connection with the successful structure and negotiation of a distribution agreement with Abbott Laboratories.

Client Background

Based in Worcester, Massachusetts, Verax is a privately-held developer of the first rapid test for the detection of bacterial contamination in platelets intended for transfusion.  According to the American Association of Blood Banks, undetected bacterial contamination is the most significant extant threat to the nation’s blood supply.  To date, however, prior approaches have proven to have limited utility, either due to the cost per test, detection sensitivity, or test process constraints.

Transaction Rationale

The Verax approach is based on the Company’s innovative “Pan Genera Detection” (“PGD”) technology, utilizing antibodies capable of binding to antigens for both Gram-positive and Gram-negative bacteria strains. The PGD test consists of a hand-held, disposable plastic cartridge that can detect bacterial contamination in under 20 minutes, allowing for testing just prior to release for transfusion.  Verax is currently conducting clinical trials with the PGD test, and expects to file for FDA 510(k) approval in the near term.  Stonebridge Technology Associates was retained by the board of directors of Verax to act as financial advisor in connection with negotiating a marketing and distribution arrangement for the PGD product. 

Stonebridge Role

Stonebridge conducted a targeted process to identify and contact suitable partners for Verax.  Ultimately, the Company successfully negotiated a five year distribution agreement with Abbott Laboratories (NYSE: ABT).  Under the terms of the agreement, Abbott will serve as the exclusive worldwide distributor of the PGD test, for which Abbott will pay licensing fees upon achievement by Verax of certain regulatory milestones.  Throughout the process, Stonebridge, working closely with the Company, identified potential partners, prepared detailed financial projections, facilitated due diligence investigations, and took a lead role in structuring and negotiating the distribution agreement. 

About Stonebridge Technology Associates

Stonebridge Technology Associates, a division of Stonebridge Associates, LLC, specializes in providing merger and acquisition advisory and capital raising services to healthcare, medical device and service, software, hardware, Internet, and other technology product and service companies. Stonebridge Associates, LLC is a FINRA-registered investment banking firm that provides creative solutions to middle market and emerging growth companies in mergers and acquisitions, private placements of debt and equity securities, fairness opinions, and other strategic and financial advisory assignments. To learn more about Stonebridge, please visit our website at www.stonebrtech.com.