Luna Innovations and Intuitive Surgical agree to buyout of medical shape-sensing technology
Roanoke-based Luna Innovations Inc. announced Wednesday that Sunnyvale, Calif.-based Intuitive Surgical Inc. has agreed to buy out the remainder of its medical shape-sensing technology for $9 million.
Intuitive Surgical acquired Luna’s fiber optic shape-sensing and localization technology, including related patents in January 2014. The terms of the original contract provided Luna with $12 million upfront, which was paid in 2014, an additional payment upon the achievement of certain technical milestones, and a royalty on certain sales of commercial systems.
“Although the technical milestone is still under development, both companies agreed that it was in our mutual best interests to settle the remaining obligations,” My Chung, president and CEO of Luna, said in a statement. “This arrangement allows Luna to accelerate the receipt of cash, thereby strengthening our balance sheet while eliminating our exposure to future development risks.”
Luna Innovations develops, manufactures and markets fiber optic sensing, test and measurement products.