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<SEC-DOCUMENT>0000950137-07-009637.txt : 20070702
<SEC-HEADER>0000950137-07-009637.hdr.sgml : 20070702
<ACCEPTANCE-DATETIME>20070702172344
ACCESSION NUMBER:		0000950137-07-009637
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070626
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070702
DATE AS OF CHANGE:		20070702

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SURMODICS INC
		CENTRAL INDEX KEY:			0000924717
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				411356149
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23837
		FILM NUMBER:		07956521

	BUSINESS ADDRESS:	
		STREET 1:		9924 W 74TH ST
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344
		BUSINESS PHONE:		6128292700

	MAIL ADDRESS:	
		STREET 1:		9924 WEST 74TH ST
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BSI CORP
		DATE OF NAME CHANGE:	19970506
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c16494e8vk.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<HEAD>
<TITLE>e8vk</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Date of Report (Date of earliest event reported): June&nbsp;26, 2007</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">SurModics, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as Specified in its Charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Minnesota<BR>
(State or Other Jurisdiction of Incorporation)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">0-23837<BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">41-1356149<BR>
(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">9924 West 74<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Street<BR>
Eden Prairie, Minnesota 55344<BR>
(Address of Principal Executive Offices and Zip Code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(952)&nbsp;829-2700<BR>
(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Not Applicable<BR>
(Former Name or Former Address, if Changed Since Last Report)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">










<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
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	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01 Entry Into a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;9.01 Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="c16494exv99w1.htm">Press Release</A></TD></TR>
</TABLE>
</CENTER>
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<!-- link2 "Item&nbsp;1.01 Entry Into a Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry Into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Exclusive License and Research Collaboration Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;26, 2007, SurModics, Inc. (&#147;SurModics&#148;) entered into an Exclusive License and Research
Collaboration Agreement (the &#147;License Agreement&#148;) with Merck &#038; Co., Inc. (&#147;Merck&#148;) to research,
develop and commercialize products incorporating SurModics&#146; I-vation&#153; platform technology for the
treatment of ocular disorders. In particular, SurModics granted Merck worldwide, exclusive rights
to research, develop and commercialize the I-vation&#153; TA (triamcinolone acetonide) product, and
other products incorporating SurModics&#146; I-vation&#153; platform technology with certain drug compounds
(the &#147;Licensed Products&#148;). Under the terms of the License Agreement, the parties agreed as
follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Merck agreed to pay SurModics an up front licensing fee of $20
million;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Merck agreed to fund the research and development
collaboration;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Merck agreed to pay SurModics up to $288&nbsp;million in fees and
development milestone payments associated with the successful product
development and attainment of certain U.S. and EU regulatory approvals for
Licensed Products; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Merck agreed to pay SurModics royalties on net sales of
Licensed Products.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merck is obligated to pay SurModics royalties on a product-by-product and country-by-country
basis generally until the expiration of the patent rights licensed to Merck. The royalties payable
by Merck are subject to reduction in certain events.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The License Agreement may be terminated by either party based upon specified uncured breaches
by the other party, or by Merck at anytime upon providing SurModics with advance notice of the
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SurModics has retained and reserved all rights not explicitly granted to Merck under the
License Agreement, including the right to research, develop or commercialize (or grant such rights
to third parties) the I-vation platform technology with compounds other than the compounds
explicitly granted to Merck under the License Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><I>Supply Agreement</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;26, 2007, in connection with the execution of the License Agreement, SurModics and
Merck entered into a Supply Agreement (the &#147;Supply Agreement&#148;). Under the terms of the Supply
Agreement, Merck has agreed to utilize SurModics as the exclusive manufacturer of all clinical and
commercial products developed pursuant to the License Agreement. All clinical products supplied
under the Supply Agreement will be supplied at SurModics&#146; economic cost to manufacture such
clinical products. All commercial products supplied under the Supply Agreement will be supplied at
SurModics&#146; economic cost to manufacture such commercial products, plus a reasonable and customary
profit.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merck may terminate its obligations to purchase product exclusively from SurModics at anytime
upon providing SurModics with advance notice of its intention to establish an alternate
supplier. In the event that Merck establishes such an alternate supplier (other than for
certain specified reasons), Merck will be obligated to reimburse SurModics for its capital
investment incurred in adding new or improving its existing facilities in order to fulfill its
obligations under the Supply Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Supply Agreement may be terminated by either party based upon specified uncured breaches
by the other party. Additionally, the Supply Agreement may be terminated by Merck at anytime upon
providing SurModics with advance notice of the termination. SurModics may terminate the Supply
Agreement anytime within a specified initial period after the effective date, or anytime thereafter
upon providing Merck with advance notice of the termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing descriptions of the License Agreement and the Supply Agreement do not purport to
be complete and are qualified in their entirety by reference to the full text of each document.
Copies of the Supply Agreement and the License Agreement, with the exception of certain information
contained therein that may be excluded pursuant to a request for confidential treatment made to the
Securities and Exchange Commission, will be filed as exhibits to SurModics&#146; Quarterly Report on
Form 10-Q for the quarter ended June&nbsp;30, 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SurModics&#146; press release announcing the License Agreement and the Supply Agreement is attached
hereto as <U>Exhibit&nbsp;99.1</U> and is incorporated herein by reference.
</DIV>
<!-- link2 "Item&nbsp;9.01 Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1 &#151; Press Release dated June&nbsp;27, 2007.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SURMODICS, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">By     /s/ Philip D. Ankeny
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  July 2, 2007&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Philip D. Ankeny&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">EXHIBIT INDEX
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
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    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;27, 2007.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>c16494exv99w1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>SurModics and Merck Enter Ophthalmic<BR>
License and Research Collaboration Agreement</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>Includes Both I-vation&#153; TA and I-vation&#153; Platform for Merck Drugs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EDEN PRAIRIE, Minnesota and WHITEHOUSE STATION, New Jersey &#151; June&nbsp;27, 2007 &#151; SurModics, Inc.
(Nasdaq: SRDX) and Merck &#038; Co., Inc. (NYSE: MRK) today announced a License and Research
Collaboration Agreement to pursue the joint development and commercialization of the I-vation&#153;
sustained drug delivery system with TA (triamcinolone acetonide) and other products that combine
Merck proprietary drug compounds with the I-vation system for the treatment of serious retinal
diseases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the terms of the agreement, Merck will lead and fund development and commercialization
activities for the SurModics innovative I-vation drug delivery platform in combination with
triamcinolone acetonide and proprietary Merck compounds. SurModics will receive an up front
licensing fee of $20&nbsp;million and will be eligible to receive up to an additional $288&nbsp;million in
fees and development milestones associated with the successful product development and attainment
of appropriate U.S. and EU regulatory approvals for these new combination products. In addition,
Merck will reimburse SurModics for its development activities, and SurModics will be responsible
for the manufacture and supply of clinical and commercial products. SurModics will also receive
royalties on product sales.<BR>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Today&#146;s announcement is an important milestone in the history of SurModics and marks the first
license of our sustained drug delivery platforms in the ophthalmology market,&#148; said Bruce Barclay,
President and CEO of SurModics. &#147;Over the past three years, and as a result of the hard work by our
employees, we have made tremendous strides evolving our business strategy and focusing on new
market opportunities. We are now in a position to provide more components of the final product and
better leverage our expertise in developing biomaterials, surface modification and drug delivery
technologies to provide significant benefits to patients.&#148;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;We are very pleased to join forces with SurModics in the development of the I-vation sustained
drug delivery system as a platform for delivering TA and Merck compounds to treat retinal disease,&#148;
said Darryle D. Schoepp, Ph.D., Merck&#146;s Senior Vice President and Head of Neuroscience Research and
Development. &#147;I-vation&#146;s encouraging TA Phase I clinical trial results along with SurModics&#146; depth
of technologies and expertise in polymers for sustained drug delivery make SurModics a compelling
and complementary development partner.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Introducing new treatments for retinal diseases for which there are few therapeutic options
supports Merck&#146;s focus on developing new medicines for unmet medical needs. This agreement adds to
our strong existing franchise in glaucoma, and builds upon Merck&#146;s long history of innovative
therapeutics in ophthalmics,&#148; added Schoepp.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About I-vation</B></U><BR>
The I-vation Intravitreal Implant is a drug delivery system capable of delivering a variety of
drugs on a sustained release basis for well over a year, can be implanted in a minimally invasive
procedure, and may be removed once the drug has been fully released. Currently, the majority of
treatments being developed for AMD and DME require repeated injections into the eye, often with a
suboptimal drug dosing profile. Replacing multiple injections with a single implant providing
long-term, controlled drug release could represent a significant advance in therapeutic treatment,
including improved patient compliance, reduced side effects and greater efficacy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I-vation TA (a version of the I-vation implant formulated with the steroid triamcinolone acetonide)
is being studied in a Phase I human clinical trial called STRIDE (Sustained Triamcinolone Release
for Inhibition of Diabetic Macular Edema). The trial is assessing the safety and tolerability of
the I-vation&#153; Intravitreal Implant with triamcinolone acetonide (TA)&nbsp;in patients with Diabetic
Macular Edema (DME)&nbsp;under an Investigational New Drug application with the U.S. Food and Drug
Administration. The nine month data from the study were presented in May&nbsp;2007 at the Association
for Research in Vision and Ophthalmology (ARVO)&nbsp;annual meeting in Fort Lauderdale, Florida.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The I-vation sustained drug delivery system can be used in combination with compounds to provide a
longer and more sustained drug delivery. The platform nature of this
technology facilitates the use of SurModics&#146; many drug delivery polymer matrix technologies,
including the Bravo&#153; polymer matrix, which is currently used on the Cypher<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Sirolimus-Eluting
Coronary stent from Cordis Corporation, a Johnson &#038; Johnson company.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About SurModics, Inc.</B></U><BR>
SurModics, Inc. is a leading provider of surface modification technologies in the areas of
biocompatibility, site specific drug delivery, biological cell encapsulation, and medical
diagnostics. SurModics partners with the world&#146;s foremost medical device, pharmaceutical and life
science companies to bring innovation together for better patient outcomes. Recent collaborative
efforts include the implementation of SurModics&#146; Bravo&#153; drug delivery polymer matrix as a key
component of the first-to-market drug eluting coronary stent. SurModics is also active in the
ophthalmology market with a sustained drug delivery system that is currently in human trials for
treatment of retinal disease. A significant portion of SurModics&#146; revenue is generated by royalties
earned from the sale of our customers&#146; commercial products. SurModics is headquartered in Eden
Prairie, MN. More information about the company can be found at www.surmodics.com. The content of
SurModics&#146; web site is not part of this release or part of any filings the company makes with the
SEC.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Safe Harbor for Forward Looking Statements</B></U><BR>
Certain statements contained in this press release may be deemed to be forward looking statements
under federal securities laws, and SurModics intends that such forward looking statements be
subject to the safe harbor created thereby. SurModics does not undertake an obligation to publicly
update or revise any forward looking statements, whether as a result of new information, future
events or otherwise.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About Merck</B></U><BR>
Merck &#038; Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients
first. Established in 1891, Merck currently discovers, develops, manufactures and markets vaccines
and medicines to address unmet medical needs. The Company devotes extensive efforts to increase
access to medicines through far-reaching programs that not only donate Merck medicines but help
deliver them to the
people who need them. Merck also publishes unbiased health information as a not-for-profit service.
For more information, visit www.merck.com.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Merck Forward-Looking Statement</B></U><BR>
This press release contains &#147;forward-looking statements&#148; as that term is defined in the Private
Securities Litigation Reform Act of 1995. These statements are based on management&#146;s current
expectations and involve risks and uncertainties, which may cause results to differ materially from
those set forth in the statements. The forward-looking statements may include statements regarding
product development, product potential or financial performance. No forward-looking statement can
be guaranteed, and actual results may differ materially from those projected. Merck undertakes no
obligation to publicly update any forward-looking statement, whether as a result of new
information, future events, or otherwise. Forward-looking statements in this press release should
be evaluated together with the many uncertainties that affect Merck&#146;s business, particularly those
mentioned in the risk factors and cautionary statements in Item&nbsp;1A of Merck&#146;s Form 10-K for the
year ended Dec. 31, 2006, and in its periodic reports on Form 10-Q and Form 8-K, which the Company
incorporates by reference.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Contacts</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">SurModics, Inc.<BR>
Phil Ankeny, Senior Vice President and Chief Financial Officer<BR>
(952)&nbsp;829-2700

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Merck &#038; Co., Inc.<BR>
Amy Rose, Director, Media Relations<BR>
(908)&nbsp;423-6537

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Or, Investors:<BR>
Graeme Bell, Executive Director, Investor Relations<BR>
(908)&nbsp;423-5185

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