Through the deal, Branford, Conn.-based CasMed will be eligible for up to an additional $2 million in cash based on sales achievements through June 2019. CasMed said it will provide transition services as the portfolio is transferred to SunTech, and that SunTech would purchase related product inventory at the end of the transition period.
“With the divestiture of these final non-core legacy assets, we can now direct full attention to our Fore-Sight tissue oximetry products and use proceeds from this transaction to support our ongoing growth initiatives. We estimate the worldwide cerebral oximetry market will ultimately reach $800 million annually and, given the accuracy and reliable readings from our Fore-Sight tissue oximeter, believe we are in an excellent competitive position,” CasMed prez & CEO Thomas Patton said in an SEC filing.
The sale includes CasMed’s Maxnibp and Maxiq technology, which had sales of $3.6 million in 2016 and $700,000 in the 1st quarter of 2017, CasMed said.
“This proprietary non-invasive blood pressure product line has the ability to accurately and reliably produce measurement results in high-motion environments and rounds out our product offering. This is an important advantage especially in the most challenging clinical situations where measurements can be difficult to obtain, making this product line an ideal fit for SunTech and our worldwide customer base,” SunTech prez Robert Sweitzer said in an SEC filing.
Last March, CasMed sold its line of neonatal intensive care disposables to Trinity Medical Devices for $3.4 million. The deal inclueded an additional $400,000 milestone pegged to sales targets over 12 months, Parsippany, N.J.-based Trinity said.