Luna Innovations (NSDQ:LUNA) said today that Intuitive Surgical (NSDQ:ISRG) agreed to put up another $9 million for the shape-sensing technology it bought for its da Vinci robot-assisted surgery platform.
Pleasanton, Calif.-based Intuitive paid a total of $12 million last year for the technology, which is designed to provide real-time measurements to help surgeons sense positions and track locations in the body during surgery. The latest installment closes out the deal, which once included milestones worth another $18 million.
“Although the technical milestone is still under development, both companies agreed that it was in our mutual best interests to settle the remaining obligations,” Luna president & CEO My Chung said in prepared remarks. “This arrangement allows Luna to accelerate the receipt of cash, thereby strengthening our balance sheet while eliminating our exposure to future development risks.”
Roanoke, Va.-based Luna and Intuitive revised their original licensing agreement in July 2013, sending LUNA shares up more than 40% in a single day. Luna’s stock more than doubled in January 2014 after the company announced that it sold the shape-sensing technology to Intuitive.
LUNA shares opened up 3.7% at $1.04 apiece today.