Under the terms of the deal, Norcross, Ga.-based Guided Therapeutics will assume development responsibilities for an Esophageal Dysplasia Detection System from Konica Minolta and control the worldwide sales and marketing rights to the device. In addition, Guided Therapeutics will license the rights to certain intellectual property developed by Konica Minolta.
"Konica Minolta has been an excellent partner in helping us to jump-start the development of this promising early cancer detection technology, by contributing significant resources directly to Guided Therapeutics in the form of non-dilutive funding," president & CEO Mark Faupel said in a prepared release. "The potential market for this product is significant and we believe that the best way to maximize shareholder value is to complete product development independently using the two companies’ combined intellectual property. At the same time, we also reserve the option to partner with a new, more healthcare-focused company."
The deal comes as Guided Therapeutics struggles with both its finances and federal regulators.
In its last earnings release, officials warned that they may not have enough cash to continue as a going concern unless GT raises money by the end of the 1st quarter.
Last January, the company received a "not-approvable" letter from FDA for its LuViva advanced cervical scan device. Guided Therapeutics officials said they resubmitted the device to federal officials in November 2012.
The company has been seeking FDA approval for LuViva since September 2010.