Ohio's Neoprobe has agreed to sell its line of gamma detection device systems to Devicor Medical Products for $30 million in cash. The deal includes a contingent value provision for payment to Neoprobe of up to an additional $20 million in royalties.
Neoprobe now plans to focus on developing its lead radiopharmaceutical pipeline products--Lymphoseek (tilmanocept) and RIGScan--and pursue efforts to expand its drug development portfolio.
"Devicor is a trusted partner and we believe it can ultimately deliver to Neoprobe the full value of the device business we have built," explained Mark Pykett, Neoprobe's resident and CEO in a statement. "This transaction allows Neoprobe to strategically focus its expertise, competencies and resources in the radiopharmaceutical space and in doing so become a pure-play specialty pharmaceutical company where attractive valuations can be realized for our shareholders."
CFO Brent Larkin told MedCity News in April about the Neoprobe's desire to add to its pipeline after the company filed documents with federal regulators that would allow the company to sell up to $100 million in new shares.
Last month, Neoprobe reached an agreement with Platinum Montaur Life Sciences regarding the nomination of directors. As a result of the agreement, Peter Drake and Jess Emery Jones will fill two current board vacancies with terms expiring at the 2012 annual meeting. Both also will be nominated for election as directors for terms expiring at the company's 2014 annual meeting. Platinum had been pushing for adding more biotech expertise to the board.
- see the Neoprobe announcement
- check out the MedCity News report