TORONTO, ONTARIO--(Marketwire - September 01, 2010) - Novadaq® Technologies Inc. (TSX: NDQ), a developer of real-time imaging systems for use in the operating room, announced today that it has entered into a five-year agreement with LifeCell™ Corporation for exclusive rights to market and distribute the SPY® Imaging System in the fields of open plastic reconstructive, gastrointestinal and head and neck surgery in North America. LifeCell is the market leader in regenerative products, such as Alloderm® Tissue Regeneration and Strattice™ Reconstructive Tissue Matrices, in the licensed surgical markets.
"SPY furthers our vision of helping doctors and patients harness the body's own regenerative power," said Lisa Colleran, president, LifeCell, a business unit of KCI. "It's a brilliant fit, bringing together partners committed to healing through best-in-class technologies."
The licensed markets represent an annual opportunity for SPY imaging in more than 500,000 procedures in the United States(1). LifeCell will provide market development and commercialization activities, including professional education, clinical support, reimbursement and sales distribution for SPY. Novadaq will continue to be responsible for research and development, manufacturing and field service.
"LifeCell has a record of advancing new ideas and technologies to commercial success and market leadership. Their reputation for innovation and significant presence in the operating room in plastic reconstructive and gastrointestinal surgery makes them the perfect partner to drive the adoption of SPY imaging in these important markets," said Dr. Arun Menawat, Novadaq CEO and president. "The LifeCell agreement represents our second partnership with a market leading company of substantive size. Strategically aligning with leaders, such as LifeCell and Intuitive Surgical, allows us to leverage the sheer size and expertise of their organizations to increase the use of SPY in the operating room, which will ultimately further lower the rates of complications in complex surgical procedures and reduce healthcare costs."
Under terms of the agreement, LifeCell will pay Novadaq $5M (USD), including a $1M (USD) investment by LifeCell's parent company to purchase 281,653 shares of Novadaq common stock at a price of $3.75 CAD per share. LifeCell and Novadaq will share on-going revenues from SPY Imaging Systems and the disposable products required to perform SPY imaging procedures. Pursuant to the agreement, LifeCell has also been granted limited first rights to negotiate marketing and sales distribution for Europe.
(1) American Society of Plastic Surgery and Medtech Insight U.S. Surgical Volumes
About Novadaq Technologies Inc.
Novadaq Technologies develops and markets real-time fluorescence imaging technology products for use in the operating room. The company's primary core technology platform, SPY Imaging, provides clinically relevant, anatomic and physiologic images during a variety of complex open and minimally invasive surgical (MIS) procedures. SPY empowers surgeons treating life threatening diseases to more effectively treat vascular blockages; assess tissue perfusion; identify cancerous tumors and delineate margins; and visualize relevant lymph nodes for removal. More than 40 peer-reviewed publications demonstrate that SPY imaging leads to fewer post-operative complications and reduced hospital costs. The endoscopic SPY system (a SPY scope) combines all of the capabilities of SPY imaging with state-of- the- art high definition (HD) white light visualization offered by conventional endoscopes. The company's key markets include plastic reconstructive, gastrointestinal, cardiac and general surgery. To realize the full potential of its technology platform, Novadaq explores technology alliances. Novadaq announced its first alliance with Intuitive Surgical Inc., in January 2009, to integrate SPY imaging into the 3-D HD imaging capabilities of the da Vinci® Surgical Robotic System. In addition, Novadaq is the exclusive United States distributor of PLC Medical's CO2 HEART LASER System. For more information, please visit the company's website at http://www.novadaq.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Novadaq's current beliefs as well as assumptions made by and information currently available to Novadaq and relate to, among other things, results of future clinical tests of the SPY Imaging System and SPY scope, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Novadaq in its public securities filings actual events may differ materially from current expectations. Novadaq disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.