Power Medical Interventions Receives $2.5 Million from Intuitive Surgical

LANGHORNE, Pa. — Power Medical Interventions Inc. announced that it has received a $2.5 million payment from Intuitive Surgical, Inc. The payment to Power Medical Interventions (PMI) was made in connection with the License and Development Agreement signed in September, and is related to a novel surgical stapling device that is being jointly developed by PMI and Intuitive. The device is being developed to attach to Intuitive's da Vinci Surgical System and will utilize PMI's patented surgical stapling technology. Once developed, this attachment will enable a physician utilizing the da Vinci Surgical System to cut and staple tissue in a broad array of surgical applications. The companies have also previously entered into an exclusive reload supply agreement whereby PMI will be the manufacturer and exclusive supplier of staple reload cartridges for the newly developed device.

“Since entering into our agreement with Intuitive Surgical in September, significant and rapid progress has been made in the joint effort to develop a first-of-its-kind surgical stapling attachment for the world’s leading surgical robotic system, the da Vinci Surgical System from Intuitive Surgical. We believe this development will empower surgeons to conduct new and existing procedures with greater ease and potentially even superior clinical results than possible today,” stated Michael Whitman, president and chief executive officer of PMI. “The receipt of this $2.5 million payment demonstrates the success of the collaboration to date and provides additional validation for PMI’s proprietary technology platform. We are pleased to bring in this funding and strengthen our financial position. PMI is looking forward to the continued success of this program, future development milestones, and ultimately a significant recurring revenue stream from our supply agreement.”

In September, PMI and Intuitive Surgical entered into a license and development agreement to jointly develop the novel surgical stapling device. Under terms of the agreement, PMI received an upfront license payment and became eligible for additional payments based upon the achievement of agreed upon milestones.
 
Source: Power Medical Interventions Inc.