Our business model

Bactiguard’s revenues have two main components: firstly, charging license partners for the right to use our coating technology on their medical devices within a specific application and geographical area, and secondly, royalties; a variable remuneration once the license partners’ products reach the market.
Bactiguard’s business model is scalable and has a high-margin potential. The revenues are generated across three phases of partnerships: application development partners, exclusivity partners and license partners.

Three partnership phases

An application development partner participates in a development project where we test the coating technology to different medical devices, surfaces, and materials. Bactiguard’s coating development team works in close collaboration with the partner. Some application development projects will not materialize and this is a natural part of our business.

An exclusivity partner gets an exclusive right to apply our coating technology to a certain medical device but has no products in the market yet, for instance due to pending regulatory approvals. Zimmer Biomet
(their broader orthopedics portfolio) is an example of an exclusivity partner.

A license partner has the right to market and sell medical devices with Bactiguard’s coating technology, in a certain region or globally. Most of our revenues are generated through partnerships at this phase. BD and Zimmer Biomet (their trauma implant ZNN Bactiguard) are examples of license partners. From 2024, Bactiguard will report revenues according to the different partnership phases to give a better understanding and transparency of the financial impact of the various partnerships.

The license revenues for 2023 are divided in license/recurring revenues (commercial phase) and new license/non-recurring revenues (collaboration phase). Not all partnerships will follow all three phases – the intention with the illustration below is to give an overview of the most extensive partnership journey. An agreement with a partner can generate revenues from different phases and streams simultaneously.

The pre-partnership process follows a well-defined roadmap and once an application development agreement is signed, it transforms into a revenue-generating partnership.