Neoprobe (AMEX:NEOP) has signed a definitive agreement to sell its GDS line of gamma detection device systems to Devicor Medical Products for $30 million in cash and a contingent value provision of up to an additional $20 million in royalties.
“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,” CEO Dr. Mark Pykett said in a statement.
“Importantly, it provides access to resources to support and advance development of our RIGS technology, to evaluate additional opportunities for Lymphoseek and to pursue growth of our pipeline with other product candidates,” he added.
In addition to the cash payment, Neoprobe would receive royalties of up to an additional $20 million in the event Devicor achieves revenue from GDS products above $21 million during any fiscal year for up to five years.
The sale is subject to approval by Neoprobe’s shareholders at a meeting planned for Aug. 15.
