SUNNYVALE, Calif., Dec. 23 /PRNewswire/ -- Biocircuits Corporation
(Nasdaq: BIOC) (or the "Company") today announced, pursuant to a collaborative
agreement with Beckman Instruments ("Beckman"), it has regained rights to its
proprietary lipid-polymer technology.  In addition, Beckman has notified
Biocircuits that it will convert its currently outstanding note into common
stock of Biocircuits.
    In August 1995, Biocircuits entered into an agreement with Beckman and
received $3,500,000 in the form of a secured promissory note in exchange for
granting Beckman options for licensing and marketing rights to certain testing
applications using the Company's lipid-polymer technology.  Pursuant to the
terms of the agreement, Biocircuits recently completed a feasibility study.
Because Beckman elected not to exercise its development license option,
Biocircuits will regain full rights to the lipid-polymer technology, including
all improvements made during the feasibility study.
    "As a result of the improvements developed during the feasibility study,
Biocircuits will continue its internal efforts to develop further the
lipid-polymer technology and will also look for licensing partners.  The
Company believes the lipid-polymer technology could be used in a next
generation IOS(R) immunodiagnostic system," said John Kaiser, President and
Chief Executive Officer of Biocircuits.  "In addition, this note conversion
now ensures the Company will remain in compliance with Nasdaq's net tangible
assets listing requirements until at least March 1997."
    The lipid-polymer technology is not used in any products currently on the
market, including the I0S system.  In March 1996, Biocircuits began selling
its IOS system and initial tests in the United States.  The IOS system
incorporates a low-cost, compact instrument and patented, disposable test
cartridges.  It is the first cost-effective, easy-to-use immunodiagnostic
system available for use in physicians' offices and other point-of-care sites.
The initial tests used in the IOS system were a combined T4 and T Uptake assay
to assess thyroid function.  In September 1996, the Company announced FDA
clearance to market a qualitative serum pregnancy assay, a test designed to
allow physicians to perform this common pregnancy test in their offices during
the patient visit in order to provide more immediate pre-natal care.  In
December 1996, the Company announced FDA clearance to market a Quantitative
hCG assay, a test to track the progress of early pregnancies.  Also in
December 1996, the Company launched its TSH assay on the second generation
cartridge.  The second generation cartridge will be required for the market
launch of all new assays.  In addition, existing assays will be converted to
the new cartridge in the near future.
    Biocircuits is currently developing three additional assays for its IOS
system:  a PSA test for the management of prostate cancer patients, a Digoxin

test for monitoring the therapeutic usage of this drug in the treatment of
heart disease and a Free T4 test for diagnosing true clinical thyroid status.
The Company currently plans to continue developing additional immunodiagnostic
assays that are commonly requested by office-based physicians.
    With its IOS system, Biocircuits is targeting the approximately 41,000
small- to medium-sized physician office practices and free-standing alternate
site laboratories which are licensed under CLIA for high or moderate
complexity testing.  Most of these sites do not currently have an
immunodiagnostic testing capability.  The IOS system is approved for
moderately complex testing.
    Biocircuits Corporation, based in Sunnyvale, California, is focused on the
development and commercialization of innovative and cost-effective
immunodiagnostic products.
    Actual results may differ materially from the above forward-looking
statements due to a number of important factors, and will be dependent upon
the Company's ability, directly or through third parties, to successfully
manufacture and market its existing and proposed products, as well as the
timely development and regulatory approval of additional products.  These
factors are more fully discussed in the Company's most recent reports on Forms
10-K and 10-Q and the Company's Resale Registration Statement No. 333-13673.

Link to this page: