Life Medical deal

In a move to focus on its Cariel wound dressing technology, the Princeton, N.J., company signed a letter of intent to sell its Sure-Closure skin stretching product line to MedChem Products Inc. for $4 million in cash, a $500,000 interest-free loan and a 10 percent royalty on gross revenues.

The transaction would cut the company’s quarterly burn rate by $1.5 million to about $750,000. CHAI estimated it has spent $2-$2.5 million on Sure-Closure. CHAI's 24-person salesforce will sell the product for MedChem. ...