Luna
Innovations Incorporated (NASDAQ:LUNA), which develops and
manufactures new-generation products for the telecommunications,
aerospace, automotive, energy and defense markets, today announced the
sale of its shape-sensing technology for medical applications to Intuitive
Surgical, Inc. (NASDAQ:ISRG).
The terms of the deal include Luna receiving $12 million upfront in two
tranches and up to an additional $18 million upon certain technical
milestones and commercial measures. Intuitive will acquire Luna’s fiber
optic shape-sensing and localization technology, including related
patents, and hire a number of engineering employees formerly utilized in
Luna’s medical shape-sensing business.
The sale will enable Luna to focus on the growth potential of its
fiber-optic sensing business while significantly strengthening the
company’s balance sheet. The sale contains provisions that maintain
Luna’s ability to service its existing agreements and for the continued
use and exploration of opportunities outside the medical industry.
“Luna develops technological solutions to problems that others cannot
solve, and this is yet another successful example of how our technology
ultimately reaches the market, in this case with a long-time development
partner,” said Luna President and CEO My Chung. “This sale is the
culmination of the shape-sensing development we’ve done over the past
several years for potentially integrating into Intuitive’s future
products. One of the many benefits of this agreement is the ability to
monetize much of the value of our innovations immediately – rather than
waiting for longer-term revenues from development and potential supply
agreements – while enabling us to streamline our focus on the growth
opportunities that we believe exist for our strain/temperature sensing
business, especially within the automotive and aerospace markets.”
“We look forward to working with Luna on a smooth transition,” said
David Larkin, Intuitive’s Vice President of Engineering. “We are excited
about the team joining Intuitive and the possibilities around this
technology.”
With the sale, Luna will focus on growing its fiber optic sensing
technology, which improves manufacturing and testing of composite and
non-composite materials, structures and systems. “With strain and
temperature sensing now as our key focus, we’re prepared to develop
technological solutions for this growing market with our proven
technology,” Chung said. ”We also will continue to sell our test and
measurement products to the telecommunications industry and develop a
pipeline of technologies through contract research.”
Mr. Chung and Dale Messick, Luna’s Chief Financial Officer will host a
conference call with investors on Thursday, January 23, 2014 at 9:00
a.m. (EST) to discuss the transaction. The conference call will be
available via live webcast on the Luna website at www.lunainc.com
under the tab “Investor Relations”. To participate by telephone, the
domestic dial-in number is 800.706.7745 and the international
dial-in number is 617.614.3472. The participant access code is 14875088.
Investors are advised to dial in at least five minutes prior to the call
to register. The webcast will be archived on the company’s website under
“Webcasts and Presentations” for 30 days following the conference call.
About Luna
Luna Innovations Incorporated (www.lunainc.com)
is a public company composed of scientists, engineers, and business
professionals developing and manufacturing a new generation of
technologies and products. It has been successful in taking innovative
technologies from applied research to product development and ultimately
to the commercial market, driving breakthroughs in fields such as
aerospace, automotive, telecommunications, healthcare, energy, and
defense.
About Intuitive
Intuitive Surgical, Inc. (NASDAQ:ISRG) is the global technology leader
in robotic-assisted minimally invasive surgery (MIS). The Company's da
Vinci® Surgical System offers surgeons superior visualization, enhanced
dexterity, greater precision and ergonomic comfort for the optimal
performance of MIS. The da Vinci System enables surgeons to perform even
complex procedures such as open-heart surgery through 1-2 cm incisions.
Forward Looking Statements
This release includes information that constitutes "forward-looking
statements" made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995, including statements
regarding, but not limited to: Luna’s potential future receipt of
deferred and contingent payments, including royalties, in connection
with the transaction; Luna’s focus on markets outside of the medical
industry; the uniqueness of Luna’s technology and intellectual property;
potential for future commercialization of its technologies; the
competitive advantage afforded by Luna’s technology; the potential
efficacy of Luna’s technology; growth potential of certain markets and
potential benefits of the incorporation of Luna’s shape-sensing
technology in robotic and non-robotic surgery and Intuitive’s ability to
improve the delivery of healthcare by virtue of the transaction.
Statements that describe the company's business strategy, goals,
prospects, opportunities, outlook, plans or intentions are also
forward-looking statements. Actual results may differ materially from
the expectations expressed in such forward-looking statements as a
result of various factors, including the ability of the technology
transferred to Intuitive to achieve certain technical specifications
that are required for triggering future payment under the asset purchase
agreement, Intuitive’s successful development of surgical systems
incorporating the Luna technology; approval of such systems for
marketing by the United States Food and Drug Administration and similar
foreign regulatory bodies; market adoption of Intuitive surgical systems
incorporating Luna technology; uncertainties regarding the growth of the
markets for the company’s temperature and strain sensing technology
outside of the medical industry; technical and scientific difficulties;
issues that might arise in any particular business relationship; and
risks and uncertainties set forth in the company's periodic reports and
other filings with the Securities and Exchange Commission. Such filings
are available at the SEC's website at http://www.sec.gov,
and at the company's website at http://www.lunainc.com.
The statements made in this release are based on information available
to the company as of the date of this release and Luna undertakes no
obligation to update any of the forward-looking statements after the
date of this release.
Copyright Business Wire 2014