PLC Systems and Edwards Lifesciences Modify Business Agreement for the Optiwave 980 Cardiac Laser Ablation System
(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)
PLC Systems Inc.
68 Harrison Ave.
Springfield, MA, 01103
Press release date: March 15, 2006
- PLC To Receive Up To $3.2 Million Consisting of $1.5 Million For Transferring To Edwards Manufacturing Rights for the Optiwave 980 Handpieces and Up to $1.7 Million in Future Royalty Payments -
FRANKLIN, Mass., March 15 / / -- PLC Systems Inc. (AMEX:PLC), a worldwide leader in cardiac laser technologies, today announced that PLC Systems and Edwards Lifesciences (NYSE:EW) have agreed to a modification of the original Optiwave 980 contract, which was announced in February 2004. As a result of the new agreement, PLC will receive $1.5 million in consideration for transferring to Edwards the Optiwave 980 disposable handpiece manufacturing and development rights and will also receive a royalty on future Optiwave 980 disposable handpiece revenue to a maximum of $1.7 million. PLC remains the exclusive manufacturer for the current generation of Optiwave 980 lasers and has the right of first refusal to develop and manufacture the next generation technology.
"Restructuring the business terms of this agreement provides benefits for both parties, as it enables each company to focus its efforts and energies on their respective core competencies," stated Mark R. Tauscher, president and CEO of PLC Systems. "We believe the immediate financial return offered to us through the upfront $1.5 million payment, coupled with the upside potential that we have retained through the new royalty arrangement, provides us a better overall economic result. In addition, this new arrangement eliminates the need for us to ramp-up and devote substantial manufacturing and engineering resources for Optiwave 980 disposables, which allows us to focus our critical resources on our new strategic growth initiative. This was a significant consideration for us, since we believe our new strategic initiative will provide a better overall growth opportunity for PLC."
PLC Systems is a medical technology company specializing in innovative technologies for the cardiac and vascular markets. Headquartered in Franklin, Mass., PLC pioneered the CO2 Heart Laser System, sold and marketed by Edwards Lifesciences, that cardiac surgeons use to perform CO2 transmyocardial revascularization (TMR) to alleviate symptoms of severe angina. Additional company information can be found at http://www.plcmed.com/. PLC Systems, PLC Medical Systems, PLC and CO2 Heart Laser are trademarks of PLC Systems Inc.
Edwards Lifesciences, Edwards, and Optiwave 980 are trademarks of Edwards Lifesciences Corporation.
Contact: John Jordan Director of Investor Relations 508-541-8800, ext. 145
Source: PLC Systems Inc.
CONTACT: John Jordan, Director of Investor Relations at PLC Systems Inc., +1-508-541-8800, ext. 145
Web site: http://www.plcmed.com/