Medical device manufacturer of next generation neurosurgery retraction devices, Vycor Medical, Inc. announced that it has entered into a purchase agreement to acquire all the assets of NovaVision, Inc., including its German subsidiary, NovaVision AG, and its patented and FDA-approved technologies for non-invasive Vision Restoration Therapy (VRT) for an aggregate price of $900,000. VRT is a clinically-proven, patient-specific diagnostic and therapeutic therapy that has been clinically shown to restore vision loss as a result of neurological trauma from instances such as stroke or brain injury.
Also important, it is notable that the NovaVision products have CE marking, a mandatory conformance mark on products in Europe that certifies that a product has met EU consumer safety, health or environmental requirements. Revenue for NovaVision in 2009 was approximately $1 million. Vycor moved on the opportunity to expand its business strategies and operations as NovaVision filed for Chapter 7 bankruptcy in April of this year.
On pace to complete the transaction within the next three weeks, Vycor has submitted $700,000 already to an escrow account with the bankruptcy trustee. The remaining balance is to be paid tomorrow, November 16, 2010. The closing is subject to the bankruptcy court’s approval and will be affected one day after the approval is granted, but not earlier than November 16, 2010 and no later than December 8, 2010.
Despite being in financial trouble along with so many other companies across the globe, NovaVision has many positive attributes which carry a great deal of value for Vycor. NovaVision is already fully operational and generating revenues with operations both domestically and internationally with compliant technologies and products in both markets. Support for operations is drawn from hundreds of prescribing doctors in the U.S. and 59 partnering centers throughout Germany and Europe.
NovaVision is engaged in stroke therapy, which is one of the most prevalent conditions worldwide. In the United States alone, strokes occur every 40 seconds, 24 hours a day, 365 days a year. While not specific to some of the results, the company’s technologies are available to be modified into new therapies to accommodate significant growth potential for Vycor in a ten-billion-dollar a year industry.
While potential is vital, a key aspect of the acquisition addresses present operations, NovaVision’s technologies for VRT have no direct competition in the United States. Solidifying the technologies is a portfolio of five issued and twelve pending patents in the U.S. and one issued patent internationally with thirty more awaiting approval.
Similar to any investment of an individual, there is no disputing that any acquisition and corporate expansion carries risks. But, this acquisition seems to have some exponential upside to accompany Vycor’s portfolio of cutting-edge retraction devices. The foundation is intact with regards to protected technology, operations, clients and the all-important, potential for growth. Already on the edge of the emerging companies, Vycor appears to be pulling ahead of the curve for the future of medical device technologies and seems worthy of further due diligence.
More information on Vycor Medical, Inc. and its technologies can be found on the company’s website at www.vycormedical.com
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