(Reuters) - British quantum dots maker Nanoco Group Plc said it had entered into a non-exclusive licence deal with Merck (NYSE:MRK) for the German drugmaker to use its technology in digital displays, sending its shares up as much as 10 percent.
Nanoco has been hunting for a new licensing deal for the past few months since it switched from exclusive to non-exclusive its deal with Dow Chemical (NYSE:DOW) Co for commercial production of quantum dots to be used in digital displays.
Under the license, Merck would be able to immediately start marketing Nanoco's cadmium-free quantum dots and ultimately establish its own production facility, Nanoco said in a statement on Monday.
The British firm did not disclose the financial details of the deal, but said it would receive a licence fee and royalties on Merck's sales of the Nanoco cadmium-free quantum dots manufactured.
Quantum dots are semiconductor crystals 10,000 times finer than a human hair. They convert electrical energy into light and can be manipulated to produce precise colours, and are mostly used in television sets.