Healthcare Industry News: Age-related Macular Degeneration
News Release - January 14, 2009
Novadaq Completes Staff Reductions & Announces Management ChangesTORONTO, ONTARIO--(Healthcare Sales & Marketing Network)--Jan 14, 2009 -- Novadaq® Technologies Inc. (Toronto:NDQ.TO ), a developer of real-time imaging and image guidance systems for use in the operating room, announced today a strategic restructuring including senior management changes and the completion of a staff reduction of 25 employees that was initiated during Q3-2008. Following the restructuring, Novadaq will have approximately 60 employees. The Company noted that the staff reductions were concentrated in administrative and support areas and are not expected to have any material impact on its research and development or sales functions.
The Company expects to incur restructuring costs of approximately $300,000 associated with personnel-related termination costs in the fourth quarter of 2008. It expects savings from the restructuring efforts to reduce annual operating expenses by approximately $1,750,000.
In connection with the restructuring, Shane A. Ellis, LL.B., LL.M., Vice President, Legal Affairs and Corporate Secretary, will be leaving the Company and will not be replaced. In addition, John Reidy, Novadaq's Chief Financial Officer, will be leaving the Company effective immediately. He will be succeeded by Stephen Purcell, currently Novadaq's Director of Finance.
Prior to joining Novadaq in March 2008, Mr. Purcell amassed more than 25 years of senior financial management experience in the manufacturing, wholesale and construction industries. Most recently, he served as Corporate Controller of Sealy Canada Ltd. where, among other accomplishments, he led the subsidiary's successful implementation of the Sarbanes-Oxley Act requirements. From 1996 to 2002, Mr. Purcell held the position of Chief Financial Officer of Canron Corporation and, prior to that, he progressed through a number of financial management roles over the course of a 14-year career with Dominion Bridge.
On the staff reductions, Dr. Arun Menawat, Novadaq's President and Chief Executive Officer, said, "Earlier today, Novadaq announced the signing of multi-year License, Development and Supply Agreements with Intuitive Surgical. The payments associated with those agreements combined with our cash on hand, puts Novadaq in the fortunate position of having sufficient capital to continue to execute on our business plan. Nevertheless, in the current economic climate, we need to be proactive. We have taken this difficult step to reduce spending and extend our existing cash runway so that we may continue to focus on achieving net profitability through our direct sales and technology alliances. I thank our departing employees for their dedication, and wish them all the best as they pursue their personal and professional goals."
With respect to the management changes, Dr. Menawat commented, "John and Shane have both earned my personal admiration and professional respect. Their contributions to the development of Novadaq's growth strategy are immeasurable. I have appreciated their valuable counsel and I sincerely wish them the highest level of success in the future. At the same time, I am very pleased to have appointed a financial professional of Stephen Purcell's caliber to the position of CFO. His long standing history of success in high growth and quick changing businesses, combined with his strong knowledge of Novadaq's operations, will be a great asset as we continue to focus on driving the company's growth toward profitability."
About Novadaq Technologies Inc.
Novadaq develops and commercializes real-time imaging and image guidance systems for use in the operating room. Novadaq's SPY® Imaging System uniquely enables surgeons to visualize blood vessels, tumors, tumor margins, blood flow and the lymphatic system in real-time during surgery. This core technology is now being applied to and across multiple surgical markets such as cardiac, plastic and reconstructive, urological, general, micro and transplant. The PINPOINT(TM) System for endoscopic autofluorescence imaging is Novadaq's first minimally invasive product. PINPOINT allows surgeons to differentiate between healthy and cancerous tissue in the lung and other hollow organs. Expanding its portfolio of minimally invasive products, Novadaq's SPY scope combines the typical features of a standard endoscope with the capabilities of SPY imaging. The SPY scope may unlock the full potential of certain minimally invasive surgeries by effectively addressing the limited field of vision that has until now constrained surgeons. Novadaq also leverages its core technology to offer the OPTTX® System, which is designed for the diagnosis, evaluation and treatment of wet Age-related Macular Degeneration (AMD). Novadaq is the exclusive United States distributor of PLC Medical's CO2 HEART LASER(TM) System, which is used in the same cardiac procedures as the SPY Imaging System. For more information, please visit the company's website at http://www.novadaq.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Novadaq's current beliefs as well as assumptions made by and information currently available to Novadaq and relate to, among other things, results of future clinical tests of PINPOINT, SPY scope and the SPY Imaging System, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Novadaq in its public securities filings actual events may differ materially from current expectations. Novadaq disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Novadaq Technologies
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