HOUSTON, Aug. 24 /PRNewswire-FirstCall/ -- Cyberonics, Inc. (Nasdaq: CYBX) today announced that it has entered into additional agreements with NeuroVista Corporation in the field of EEG-based seizure detection to build on its position as the leader in medical devices for epilepsy.
In October 2009, the company announced that it had licensed NeuroVista technology related to a seizure detection algorithm, a rechargeable battery system, wireless communication, and an implantable lead. In July 2010, the company entered into additional agreements with NeuroVista Corporation, licensing technology related to an external charging system for an implanted battery and agreeing to invest $5.0 million in the form of a convertible note. The convertible note investment closed on August 18, 2010, contemporaneous with the closing of an equity finance round with proceeds of $16.5 million from one new and three existing investors in NeuroVista.
NeuroVista, based in Seattle, Washington, is an early-stage medical device company pioneering new technologies in the management and treatment of epilepsy, including a novel Seizure Advisory System™.
"Our technology collaborations with NeuroVista over the past year have proved to be very productive. We expect that this additional collaboration will further accelerate our technology development program, while the investment will enable NeuroVista to pursue its clinical studies involving the NeuroVista® Seizure Advisory System™," said Dan Moore, Cyberonics' President and Chief Executive Officer.
"Combining our NeuroVista technology collaborations with our research and development commitments in cardiac-based seizure detection provides a unique, broad-based approach to developing devices capable of detecting seizures in patients with epilepsy. We are excited that another leader in the field of devices for epilepsy has chosen to join us in helping to improve the lives of patients with epilepsy," concluded Mr. Moore.
About Cyberonics, Inc. and VNS Therapy™
Cyberonics, Inc. (NASDAQ: CYBX) is a medical technology company with core expertise in neuromodulation. The company developed and markets the Vagus Nerve Stimulation (VNS) Therapy™ System, which is FDA-approved for the treatments of refractory epilepsy and treatment-resistant depression. The VNS Therapy System uses a surgically implanted medical device that delivers pulsed electrical signals to the vagus nerve. Cyberonics markets the VNS Therapy System in selected markets worldwide.
NeuroVista is clinical stage medical device company pioneering new technologies that will revolutionize the management and treatment of epilepsy. Epilepsy is a neurological condition affecting approximately 1% of the U.S. population—more than Parkinson's disease, multiple sclerosis, and Lou Gehrig's disease combined. NeuroVista is a privately held company based in Seattle. For more information visit www.neurovista.com.
Safe harbor statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the use of forward-looking terminology, including "may," "believe," "will," "expect," "anticipate," "estimate," "plan," "intend," "forecast," or other similar words. Statements contained in this press release are based on information presently available to us and assumptions that we believe to be reasonable. We are not assuming any duty to update this information if those facts change or if we no longer believe the assumptions to be reasonable. Investors are cautioned that all such statements involve risks and uncertainties, including without limitation, statements concerning accelerating our technology development program and conducting clinical studies involving the NeuroVista® Seizure Advisory System™. Our actual results may differ materially. Important factors that may cause actual results to differ include, but are not limited to: continued market acceptance of VNS Therapy™ and sales of our product; the development and satisfactory completion of clinical trials and/or market test and/or regulatory approval of VNS Therapy™ for the treatment of other indications; satisfactory completion of post-market studies required by the U.S. Food and Drug Administration as a condition of approval for the treatment-resistant depression indication; adverse changes in coverage or reimbursement amounts by third-parties; intellectual property protection and potential infringement claims; maintaining compliance with government regulations and obtaining necessary government approvals for new indications; product liability claims and potential litigation; reliance on single suppliers and manufacturers for certain components; the accuracy of management's estimates of future expenses and sales; the results of the previously disclosed governmental inquiries; the potential identification of material weaknesses in our internal controls over financial reporting; risks and costs associated with such governmental inquiries and any litigation relating thereto or to our stock option grants, procedures, and practices and other risks detailed from time to time in our filings with the Securities and Exchange Commission (SEC). For a detailed discussion of these and other cautionary statements, please refer to our most recent filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2010.
Greg Browne, CFO
100 Cyberonics Blvd.
Houston, TX 77058
Main: (281) 228-7262
Fax: (281) 218-9332
SOURCE Cyberonics, Inc.