Skyline Medical Lands Joint Venture Deal With Digital Securities Co.
Skyline Medical Inc. entered into a joint venture agreement on Tuesday with Electronic On-Ramp Inc., a provider of digital security services for U.S. government organizations such as the Department of Treasury and the FBI.
The companies said its new organization would bid to supply medical products for, among other things, mobile operating rooms. Financial details were not disclosed, however, a release stated EOR is expected to own 51 percent of the new organization.
Skyline and EOR expect the joint venture to be in operation by the end of the year, which, once operational, would provide Skyline with access to bid on contracts related to U.S. government organizations affiliated with EOR. One contract, for example, could see Skyline snagging a chunk of the federal government’s $550 million dedicated toward humanitarian assistance and disaster relief.
Eagan-based Skyline is best known for its Streamway system, which automates the collection, measurement and disposal of surgical fluids. Dr. Carl Schwartz, the interim CEO of Skyline, said in a release that the joint venture is likely to open up new revenue potential for the company.
“We are very excited to enter into this new joint venture with EOR as it provides access to significant federal, state and local funds…and advances our strategy to increase our operating room footprint,” he said.
EOR currently holds partner contracts with the U.S. National Institutes of Health and the Department of Defense. The Rockville, Maryland-based company also pre-negotiated terms with the General Services Administration for two contracts that will allow Skyline to promote sales of its products.
Skyline’s deal with EOR will allow it to bid on government contracts totaling $33 billion, according to Dr. Schwartz. (Notably, Skyline’s products only make up a fraction of the medical products needed in an operating room, meaning its new partnership with EOR won’t receive the entire contract’s sum.)
“The Streamway System will be the anchor product in our new venture, and utilizing our deep expertise working as a government contractor we foresee exciting opportunity,” said William Pullen, president of EOR in a statement. “We look forward to tapping into Skyline’s medical device expertise to become a powerhouse supplier to the U.S. government not only of Streamway…but also to identify and source additional medtech product opportunities.”
Following news of the partnership, Skyline’s stock doubled from its 8 cents close on Monday to as high as 16 cents on Tuesday.