Digirad Announces Sale of Surgical Imaging Technology Assets to Novadaq Technologies
Digirad Corporation announced today that it has signed an agreement to sell its "Trapper" Surgical Imaging Technology previously under development, as well as license "Trapper" related technology to Novadaq Technologies, a publicly-traded developer of clinically-relevant imaging solutions for use in surgical and outpatient wound care procedures. Under the terms of the agreement, Digirad will receive up front consideration of $2 million and up to $1 million in deferred contingent payments based on the achievement of specific regulatory and commercial milestones. In addition, a royalty on sales will be paid for a period of five years from the date of the first commercial sale.
"The creation of the Trapper system and technology evolved from a number of research and development initiatives, and given our recent strategic shift toward cash generation, as well as creating and returning shareholder value, we decided to monetize these non-core assets," said Digirad President and CEO Matthew G. Molchan. "Of course, we are very pleased that Novadaq, which is a leader in the surgical imaging industry and well suited to take this technology to market, recognized the value of the technology we developed. The transaction provides Digirad additional capital, giving the Company more options going forward and helps assure that valuable, clinical technology can reach patients faster."