Novadaq inks SPY imaging deal with LifeCell

Novadaq Technologies (TSX:NDQ) has signed a five-year agreement with LifeCell for exclusive rights to market and distribute its SPY imaging system in the fields of open plastic reconstructive, gastrointestinal, and head and neck surgery in North America.

Under the accord, LifeCell will pay Novadaq $5 million (U.S.), including a $1 million investment by LifeCell’s parent company to purchase 281,653 shares of Novadaq common stock at a price of $3.75 (Canadian) each.

LifeCell and Novadaq will share continuing revenues from SPY imaging systems and the disposable products required to perform SPY imaging procedures. LifeCell also received limited first rights to negotiate marketing and sales distribution for Europe.

The licensed markets represent an annual opportunity for SPY imaging in more than 500,000 procedures in the U.S., according to American Society of Plastic Surgery.

 ”The LifeCell agreement represents our second partnership with a market-leading company of substantive size,” CEO Arun Menawat said in a statement. “Strategically aligning with leaders, such as LifeCell and Intuitive Surgical, allows us to leverage the sheer size and expertise of their organizations to increase the use of SPY in the operating room, which will ultimately further lower the rates of complications in complex surgical procedures and reduce health care costs.”