we got news, but personally, i don't believe this was the source of the volume. time will tell.
-----
Misonix Announces Investment in Focus Surgery, Inc. and Joint Development Agreements
FARMINGDALE, N.Y.--(BUSINESS WIRE)--April 30, 1999--Misonix, Inc. ("Misonix") (Nasdaq:MSON) and Focus Surgery, Inc. ("Focus") a privately-held Indianapolis firm, today jointly announced an agreement in principle whereby Misonix will invest $3 million to obtain an approximately 20% equity position in Focus. The agreement further provides for a series of development and manufacturing agreements whereby Misonix would upgrade existing Focus products and create new products based on high intensity focused ultrasound (HIFU) technology for the non-invasive treatment of tissue for certain medical applications.
Narendra T. Sanghvi, President and CEO of Focus Surgery said, "the goal of this alliance is to gain clinical approval and commercialize HIFU product for the treatment of Benign Prostatic Hyperplasia (BPH), and to develop an image guided HIFU system platform to non-invasively treat many other diseases that are both benign and cancerous." Although the Focus BPH product has not been cleared for use in the U.S., more than 1,200 patients outside the United States, primarily in the Far East, have been successfully treated.
Agreements between Misonix and Focus Surgery grant exclusive rights to manufacture and development of the next generation HIFU device to Misonix. Misonix would also have the optional rights to market and sell several other high potential HIFU applications for the breast, liver, and kidney for both benign and cancerous tumors.
Michael A. McManus, Jr., President and CEO of Misonix, said, "We are excited about our new relationship with Focus. They are extremely professional people who have already shown that they can create a successful product for BPH outside the U.S. Our relationship will allow Misonix to not only be an equity participant in the future of this business but to utilize our expertise in ultrasound to help Focus develop the next generation of products which Misonix will produce. Our additional rights in the areas of the breast, liver, and kidney are opportunities for our Company to play an important role in the future treatment of benign and cancerous tumors."
Focus Surgery will use the proceeds of the investment to complete the ongoing Phase III PMA clinical trials for the treatment of BPH - a disease that affects nearly 11 million men in the United States. "The market potential for the non-invasive surgical treatment for BPH combined with the potential for diagnostic ultrasound imaging in a single device is extraordinary," said Sanghvi. He added, "the company plans to use this platform for the non-invasive treatment of prostate cancer in the future."
Misonix, Inc. develops, manufactures, and/or markets medical scientific, and industrial ultrasonic and air pollution systems.
Focus Surgery is a pioneer in developing, manufacturing, and marketing image-guided non-invasive HIFU technology capable of destroying deep-seated tissue by rapidly elevating the temperature in the focal zone without affecting the intervening tissue.
The agreement in principle contemplates and is subject to the finalization and execution of formal, legally binding agreements between the two companies. Both parties have indicated that they are looking forward to doing this within the next several weeks. |
