Respironics buys bilirubin analyzer product line
March 10, 2003
NORCROSS, Ga. - Respironics announced last week that it has acquired SpectRx's BiliChek Non-invasive Bilirubin Analyzer product line and related assets.
Respironics had previously been the exclusive U.S. licensee and distributor of the product line. The base cash purchase price is $4 million with an additional $1 million to be paid based upon completion of product development work already underway, and up to an additional $6.25 million to be paid in royalties and earn out payments over the next five years based upon the achievement of certain operating results.
SpectRx announced its intention to sell the BiliChek business in October 2002 to enable it to focus on expanding its diabetes and cancer detection businesses. Proceeds from the sale will go to fund the expansion of SpectRx's growing SimpleChoice diabetes product line and the development of a continuous glucose monitor.
"The sale of BiliChek enables us to better focus our management and capital resources on the large and growing opportunities we have in the diabetes and cancer detection markets," said Mark A. Samuels, SpectRx chairman and CEO.
"The transaction provides us with non-dilutive financial resources to roll out more diabetes products adding to the SimpleChoice reservoir and A1c products already on the market, and further develop our glucose monitoring business."
"We are committed to the infant and neo-natal marketplace and believe the BiliChek product line will help to drive our revenues in this area," said Respironics CEO James W. Liken
Before the BiliChek, the most common method of monitoring infant jaundice was to draw blood from the heel of the infant and wait for laboratory results. By analyzing light reflected from the baby's forehead, the BiliChek non-invasively predicts the level of bilirubin, the cause of infant jaundice. This method of using light non-invasively to detect and monitor diseases and medical conditions is called biophotonics. The BiliChek is the first non-invasive device cleared by the FDA with specific "Indications for Use" for the monitoring of hyperbilirubinemia before, during and after treatment of infant jaundice.