Cyberonics enters into a License Agreement with NeuroVista Corporation

Oct 3 2009

Cyberonics, Inc. (Nasdaq: CYBX) today announced two collaborations in the field of EEG-based seizure detection to build on its position as the leader in medical devices for epilepsy.

On October 1, 2009, Cyberonics entered into a License Agreement with NeuroVista Corporation, providing Cyberonics with access to a range of technology and patents in exchange for payments extending through April 2011. The NeuroVista technology will enable Cyberonics to accelerate its program for development of an implantable pulse generator for stimulating the vagus nerve in response to EEG-based detection of a seizure and includes technology related to an algorithm for seizure detection, a rechargeable battery system, wireless communication, and an implantable lead.

NeuroVista, based in Seattle, Washington, is an early-stage medical device company pioneering new technologies in the management and treatment of epilepsy, including a novel Seizure Advisory System.

Earlier this year, Cyberonics entered into an Exclusive Patent License Agreement and a Research Agreement with the Massachusetts Institute of Technology to license two patent applications relating to EEG-based seizure detection and to sponsor related research. The license agreement provides for minimal up-front and annual payments and future royalty payments based on net sales of the licensed product.

"Collectively, these agreements demonstrate our commitment to continuing to develop medical devices for patients with epilepsy, and incorporating new and promising technology into future generations of the VNS Therapy System, " said Dan Moore, President and Chief Executive Officer. "The proven ability of VNS Therapy to provide significant long-term relief to people with epilepsy, including seizure reduction and improvements to quality of life, will be enhanced by these and other investments in our research and development efforts.

"Combining these investments with our previously disclosed investments in cardiac-based seizure detection provides a unique, broad-based approach to developing seizure detection for patients with epilepsy.

"We are excited that two leaders in the field of epilepsy have chosen to join us in helping to improve the lives of patients with epilepsy."