Court Approves Asset Sale to Smith & NephewSan Diego, Calif., May 28, 2003 – The ATS Liquidating Trust today announced that the United States Bankruptcy Court for the Southern District of California has approved the company’s motion under section 363 of the U. S. Bankruptcy Code to allow the sale of additional fixed assets and intellectual property rights to Smith & Nephew Wound Management (La Jolla).
Smith & Nephew will acquire certain ATS intellectual property rights including that related to cartilage, orthopedics, spinal, neurological, and dental applications, which includes rights to a pending clinical trial using Dermagraft in a periodontal application. The agreement also covers transferring certain research and development equipment and assets related to the manufacturing of collagen.
Smith & Nephew will pay the ATS Liquidating Trust $700,000 at closing in addition to future milestone and royalty payments conditional on future product development.