HOUSTON, Dec. 18 /PRNewswire-FirstCall/ -- Cyberonics, Inc. (Nasdaq: CYBX) announced that effective December 18, 2007, the company has entered into an agreement with Ethicon Endo-Surgery granting exclusive rights to the company's patents and patent applications pertaining to vagus nerve stimulation (VNS) for the treatment of obesity and two related co-morbidities, diabetes and hypertension, in overweight patients.
Ethicon Endo-Surgery has agreed to pay Cyberonics a signing fee of $9.5 million and royalties on commercial sales of products covered by the subject patents.
"This agreement advances our mission to improve the lives of people affected by chronic neurological disorders," commented Dan Moore, Cyberonics' President and Chief Executive Officer. "Out-licensing our obesity-related patents permits us to obtain value from these assets while we continue to focus on our other strategic objectives -- achieving positive cash flow and profitability, growing our core epilepsy business, and appropriately developing our treatment-resistant depression business -- and provides an opportunity for a device leader in the obesity space to utilize Cyberonics' assets in developing weight reduction solutions."
More than 46,000 patients worldwide have benefited from VNS Therapy during the past 10 years.
ABOUT VNS THERAPY AND CYBERONICS
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," and "forecast," or other similar words. Statements
contained in this press release are based upon information presently
available to us and assumptions that we believe to be reasonable. We are
not assuming any duty to update this information should those facts change
or should 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 achieving positive cash
flow and profitability, growing our core epilepsy business, appropriately
developing our TRD business, and developing VNS as a viable therapy for
weight reduction. 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 TRD 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 new 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 (including the previously disclosed private litigation);
uncertainties associated with stockholder litigation; 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 27, 2007.
Greg Browne, CFO
100 Cyberonics Blvd.
Houston, TX 77058
Main: (281) 228-7262
Fax: (281) 218-9332
|SOURCE Cyberonics, Inc.|
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