Healthcare Industry News: Age-related Macular Degeneration
News Release - January 26, 2007
Novadaq Establishes Direct US Sales TeamEnds US Distribution Partnership With CarboMedics
TORONTO, Jan. 26 (HSMN NewsFeed) - Novadaq® Technologies Inc. (TSX: NDQ ), a developer of medical imaging systems for the operating room, announced today that it has ended its distribution partnership with CarboMedics, a member of the Sorin Group of Companies, effective December 31, 2006, representing the final step in Novadaq's strategy to establish a dedicated direct sales organization. The termination of these arrangements will not require any significant net payment from one party to the other.
In December of 2006 Novadaq hired 12 highly experienced sales representatives to represent the SPY® Intra-operative Imaging System (SPY System) throughout the United States. The newly hired sales team will partner with Novadaq's 12 existing Clinical Educators to drive SPY System sales and product adoption across the U.S. Both companies are currently working together to achieve a smooth transition of sales responsibility for current and future SPY customers from the CarboMedics sales organization to the Novadaq direct sales team.
"We are grateful to our CarboMedics partners for helping us to introduce SPY in cardiac surgery. We are working towards changing the paradigm of cardiac surgical procedures, by providing imaging in the operating room to improve outcomes. This effort requires a dedicated sales team that can specialize in surgical interventional imaging. Over the long term, our dedicated sales team will also be key to building sales of our pipeline products," said Dr. Arun Menawat, CEO and President of Novadaq Technologies Inc. "Members of our sales team have had previous successful sales experiences at many of the most highly respected companies in the industry, including successful start-up companies such as Cardiothoracic Systems (CTS), FoxHollow and I-Flow, as well as large established medical device companies such as Medtronic, Genzyme, Toshiba, Guidant, St. Jude and others. This wealth of industry experience combined with our team's strong long-term relationships with surgeons and hospitals is an important step in our efforts to ensure that use of the SPY System becomes a standard of care in cardiac surgery."
In December 2006, Novadaq secured 12 additional purchase orders for SPY Systems, which are being installed during the month of January bringing the total number of systems installed in the United States to 67. Additional purchase orders have been received in January and will be announced later as part of the Q1 results.
About Novadaq Technologies
Novadaq Technologies Inc. (TSX: NDQ ) develops and commercializes medical imaging devices for use in the operating room. Novadaq's proprietary imaging platform can be used to visualize blood vessels, nerves and the lymphatic system during surgical procedures. Novadaq's SPY Intra-operative Imaging System, commercially available worldwide, enables cardiac surgeons to visually assess coronary vasculature and bypass graft functionality during the course of open-heart surgery. Novadaq's OPTTX® System which received CE Mark approval in November 2006, is aimed at the diagnosis, evaluation and treatment of wet Age-related Macular Degeneration (AMD) by using the same core imaging technology that is used in the SPY System. Novadaq's LUNA(TM) system is designed to enable surgeons to visualize nerve bundles during the course of urological and neurological procedures. LUNA has been granted a license for use by Health Canada. For more information, please visit the company's website at www.novadaq.com.
This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future financial position, business strategy and strategic goals, research and development activities, projected costs and capital expenditures, financial results, research and clinical testing outcomes, taxes and plans and objectives of or involving Novadaq. Without limitation information regarding future sales and marketing activities, SPY System placement targets and utilization rates, the implementation of a reimbursement code for the SPY System, future revenues and research and development activities, and the planned European commercial launch of the OPTTX System, as well as the Company's plans for each of the SPY System, the OPTTX System and LUNA, is forward-looking information. Forward-looking information is based on certain factors and assumptions regarding, among other things, market acceptance and the rate of market penetration of Novadaq's SPY System, the effect of a recommended reimbursement code for the SPY System, the clinical results of the use of the SPY System, the results from clinical tests of the OPTTX System and LUNA , and potential opportunities in the AMD treatment market and in image guided conventional and minimally invasive urological and neurological applications. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include risks relating to the transition from research and development activities to commercial activities, risks related to the establishment and maintenance of a direct sales force, risks associated with market acceptance and adoption of the SPY System and of the OPTTX System, the risk that a recommended reimbursement code will not be fully implemented or that it will not affect acceptance of the SPY System, risks related to third party contractual performance, dependence on key suppliers for components of the SPY System and the OPTTX System, regulatory and clinical risks, risks relating to the protection of intellectual property, risks inherent in the conduct of research and development activities, including the risk of unfavorable or inconclusive clinical trial outcomes, potential product liability, competition and the risks posed by potential technological advances, and risks relating to fluctuations in the exchange rate between the US dollar and the Canadian dollar. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Novadaq may elect to, Novadaq is under no obligation and does not undertake to update this information at any particular time.
This press release was prepared by management from information available to January 23, 2007.
Source: Novadaq Technologies
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