Cyberonics Inks Two Collaborations

• By Zacks Equity Research
• On 7:46 am EDT, Wednesday October 7, 2009

Cyberonics, Inc. (NasdaqGM: CYBX - News) entered into two collaboration agreements in the field of EEG-based seizure detection technology to bolster its leadership position in epilepsy. The collaborations are with NeuroVista Corporation and the Massachusetts Institute of Technology. 

The License Agreement with NeuroVista Corporation entered on Oct 1, 2009 provides Cyberonics with access to a wide range of technology and patents in exchange for payments extending through Apr 2011. Details regarding the payments have not yet been disclosed. 

The NeuroVista technology includes an algorithm for seizure detection, a rechargeable battery system, wireless communication, and an implantable lead and will help Cyberonics accelerate its development of an implantable pulse generator. NeuroVista Corporation is an early-stage medical device company pioneering new technologies in the management and treatment of epilepsy, a central nervous system disorder characterized by loss of consciousness and convulsions. 

In early 2009, Cyberonics entered into an Exclusive Patent License Agreement and a Research Agreement with the Massachusetts Institute of Technology. The agreement calls for licensing two patent applications related to EEG-based seizure detection and sponsor related research. 

The financial transactions include minimal upfront and annual payments and royalty payments based on net sales of the licensed product. The two collaborations will enable Cyberonics to incorporate new technology into future generations of the Vagus Nerve Stimulation (VNS) Therapy System. 

Cyberonics is a neuromodulation company that develops and markets the VNS Therapy System for the treatment of refractory epilepsy and treatment-resistant depression. The VNS Therapy improves the patient’s quality of life by minimizing seizure reduction.

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