Shares in Fusion IP, which commercialises university research, surged after it announced that Seren Photonics, its 48% owned LED technology company, has signed its first collaboration agreement.
"Its technology is a fresh approach to increasing the amount of light created at the very heart of a white high brightness LED," Fusion explained.
Fusion, which did not name the manufacturer or reveal any financial details, said under the terms of the agreement, Seren has given exclusive rights to its technology for certain lighting applications in India.
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"The chosen partner has entered in to a collaboration agreement with Seren, which when successfully concluded, will allow the partner to take a licence for manufacture of product incorporating Seren's processes," Fusion said.
Fusion IP estimates that the first sales of the product will start in 2013.
Seren's Chairman Dr Godfrey Ainsworth said, "We estimate that the first sales of manufactured product, incorporating our technology, will...lead to an increasing royalty stream, as our partner brings our process in to full production and their own manufacturing capacity increases."
David Baynes, CEO of Fusion, added, "This is another great example of the value of the technology in our pipeline. Seren clearly has the potential to become an extremely valuable portfolio company and we look forward to more deals in the future, as the company rolls out the technology into other sectors and other countries across the world."
