Dublin, Ohio’s Neoprobe Corporation announced that it has signed a definitive asset purchase agreement to sell its GDS line of gamma detection device systems to Devicor for $30 million in cash, plus a contingent value provision for payment to Neoprobe of up to an additional $20 million in royalties.
Devicor is the parent corporation of Mammotome, a breast cancer diagnostic andÂ detection products company based in Cincinnati. In July 2010, Devicor acquired the Breast Care Business of Ethicon Endo-Surgery, resulting in the launch of Mammotome.
According to a company press release, the sale allows Neoprobe to focus its resources and efforts on the continued development of its lead radiopharmaceutical pipeline products, Lymphoseek (tilmanocept) and RIGScan, and to pursue efforts to expand its drug development portfolio.
The sale is subject to approval by Neoprobeâ€™s shareholders and is expected to close shortly after the shareholdersâ€™ meeting planned for August 15, 2011.
â€œDevicor is a trusted partner and we believe it can ultimately deliver to Neoprobe the full value of the device business we have built,” said Dr. Mark Pykett, Neoprobeâ€™s President and CEO. “This transaction allows Neoprobe to strategically focus its expertise, competencies and resources in the radiopharmaceutical space.”
â€œNeoprobe has been an excellent partner and we look forward to the next phase of our relationship as the dedicated GDS employees join our growing company and we continue to invest in expanding the product line,â€ said Tom Daulton, Devicorâ€™s CEO.