June 22, 1998
Company Press Release
Sofamor Danek Group Acquires Proprietary Deep Brain Stimulation
Technology From Advanced Neuromodulation Systems
MEMPHIS, Tenn.--(BUSINESS WIRE)--June 22, 1998--Sofamor Danek Group,
Inc. (NYSE:SDG - news) today announced that the Company has entered into
an agreement with Advanced Neuromodulation Systems, Inc. to acquire
exclusive worldwide rights to use, market and sell products and systems
for use in Deep Brain Stimulation.
Deep Brain Stimulation (``DBS'') products provide electrical stimulation
to certain areas of the brain and are intended to relieve the effects of
various neurological disorders, such as Parkinson's Disease and
Essential Tremor. The electrical stimulation is delivered in the form of
small electrical pulses from a pulse generator through electrodes to
targeted structures in the brain. Sofamor Danek believes that the
ability to precisely position electrodes through the use of the
Company's StealthStation(TM) Treatment Guidance Platform has the
potential to expand the use of deep brain stimulation. Advanced
Neuromodulation Systems is a leader in the field of electrical
stimulation, and Sofamor Danek believes they have significant
proprietary rights, including intellectual property rights, in this
technology.
Subject to the terms of the agreement, Sofamor Danek will pay Advanced
Neuromodulation Systems a series of payments throughout the development
cycle. The Company anticipates that a one time charge related to the
transaction of approximately $13 million will be taken in the second
quarter of 1998. Advanced Neuromodulation Systems will also receive a
royalty when Sofamor Danek sells the product to a customer. Under the
terms of the agreement, Sofamor Danek will obtain its DBS products from
Advanced Neuromodulation Systems. In order to market the products in the
U.S., FDA clearance will be necessary, which will require clinical
trials.
Commenting on the announcement, E. Ron Pickard, chairman and chief
executive officer of Sofamor Danek Group, Inc. stated, ``The field of
Deep Brain Stimulation is one of the most promising and dynamic areas of
neurosurgery. We believe that our StealthStation(TM) Treatment Guidance
Platform is an enabling technology that has the potential to expand the
use of deep brain stimulation and ultimately to improve the quality of
life for thousands of patients.''
Sofamor Danek Group, Inc. is primarily involved in developing,
manufacturing and marketing devices, instruments, computer-assisted
visualization products and biomaterials used in the treatment of spinal
and cranial disorders. The Company's stock is traded on the New York
Stock Exchange (NYSE) under the symbol SDG.
Contact: Sofamor Danek Group Inc., Memphis
George G. Griffin, III or J. Mark Merrill, 901/396-2695
Copyright © 1998 Business Wire. All rights reserved.
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Judith Richards, London, Ontario, Canada
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