Toronto, Ontario – January 26, 2007 - Novadaq® Technologies Inc.
(TSX: NDQ), a developer of medical imaging systems for the operating
room, announced today that it has ended its distribution partnership
with CarboMedics, a member of the Sorin Group of Companies, effective
December 31, 2006, representing the final step in Novadaq’s strategy to
establish a dedicated direct sales organization. The termination of
these arrangements will not require any significant net payment from
one party to the other.
In December of 2006 Novadaq hired 12 highly experienced sales
representatives to represent the SPY® Intra-operative Imaging System
(SPY System) throughout the United States. The newly hired sales team
will partner with Novadaq’s 12 existing Clinical Educators to drive SPY
System sales and product adoption across the U.S. Both companies are
currently working together to achieve a smooth transition of sales
responsibility for current and future SPY customers from the
CarboMedics sales organization to the Novadaq direct sales team.
“We are grateful to our CarboMedics partners for helping us to
introduce SPY in cardiac surgery. We are working towards changing the
paradigm of cardiac surgical procedures, by providing imaging in the
operating room to improve outcomes. This effort requires a dedicated
sales team that can specialize in surgical interventional imaging. Over
the long term, our dedicated sales team will also be key to building
sales of our pipeline products,” said Dr. Arun Menawat, CEO and
President of Novadaq Technologies Inc. “Members of our sales team have
had previous successful sales experiences at many of the most highly
respected companies in the industry, including successful start-up
companies such as Cardiothoracic Systems (CTS), FoxHollow and I-Flow,
as well as large established medical device companies such as
Medtronic, Genzyme, Toshiba, Guidant, St. Jude and others. This wealth
of industry experience combined with our team’s strong long-term
relationships with surgeons and hospitals is an important step in our
efforts to ensure that use of the SPY System becomes a standard of care
in cardiac surgery.”
In December 2006, Novadaq secured 12 additional purchase orders for SPY
Systems, which are being installed during the month of January bringing
the total number of systems installed in the United States to 67.
Additional purchase orders have been received in January and will be
announced later as part of the Q1 results.
About Novadaq Technologies
Novadaq Technologies Inc. (TSX: NDQ) develops and commercializes
medical imaging devices for use in the operating room. Novadaq’s
proprietary imaging platform can be used to visualize blood vessels,
nerves and the lymphatic system during surgical procedures. Novadaq’s
SPY Intra-operative Imaging System, commercially available worldwide,
enables cardiac surgeons to visually assess coronary vasculature and
bypass graft functionality during the course of open-heart surgery.
Novadaq’s OPTTX® System which received CE Mark approval in November
2006, is aimed at the diagnosis, evaluation and treatment of wet
Age-related Macular Degeneration (AMD) by using the same core imaging
technology that is used in the SPY System. Novadaq’s LUNATM system is
designed to enable surgeons to visualize nerve bundles during the
course of urological and neurological procedures. LUNA has been granted
a license for use by Health Canada. For more information, please visit
the company's website at www.novadaq.com.
Forward Looking Statements
This press release contains certain information that may constitute
forward-looking information within the meaning of securities laws. In
some cases, forward-looking information can be identified by the use of
terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”,
“believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or
other similar expressions concerning matters that are not historical
facts. Forward-looking information may relate to management’s future
outlook and anticipated events or results, and may include statements
or information regarding the future financial position, business
strategy and strategic goals, research and development activities,
projected costs and capital expenditures, financial results, research
and clinical testing outcomes, taxes and plans and objectives of or
involving Novadaq. Without limitation information regarding future
sales and marketing activities, SPY System placement targets and
utilization rates, the implementation of a reimbursement code for the
SPY System, future revenues and research and development activities,
and the planned European commercial launch of the OPTTX System, as well
as the Company’s plans for each of the SPY System, the OPTTX System and
LUNA, is forward-looking information. Forward-looking information is
based on certain factors and assumptions regarding, among other things,
market acceptance and the rate of market penetration of Novadaq’s SPY
System, the effect of a recommended reimbursement code for the SPY
System, the clinical results of the use of the SPY System, the results
from clinical tests of the OPTTX System and LUNA , and potential
opportunities in the AMD treatment market and in image guided
conventional and minimally invasive urological and neurological
applications. While the Company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. Forward looking-information is subject to
certain factors, including risks and uncertainties that could cause
actual results to differ materially from what we currently expect.
These factors include risks relating to the transition from research
and development activities to commercial activities, risks related to
the establishment and maintenance of a direct sales force, risks
associated with market acceptance and adoption of the SPY System and of
the OPTTX System, the risk that a recommended reimbursement code will
not be fully implemented or that it will not affect acceptance of the
SPY System, risks related to third party contractual performance,
dependence on key suppliers for components of the SPY System and the
OPTTX System, regulatory and clinical risks, risks relating to the
protection of intellectual property, risks inherent in the conduct of
research and development activities, including the risk of unfavorable
or inconclusive clinical trial outcomes, potential product liability,
competition and the risks posed by potential technological advances,
and risks relating to fluctuations in the exchange rate between the US
dollar and the Canadian dollar. You should not place undue importance
on forward-looking information and should not rely upon this
information as of any other date. While Novadaq may elect to, Novadaq
is under no obligation and does not undertake to update this
information at any particular time.
This press release was prepared by management from information available to January 23, 2007.
For further information visit our website at www.novadaq.com, or contact:
Arun Menawat, PhD, MBA
President & CEO
Novadaq Technologies Inc.
Phone: 905-629-3822 x 202
amenawat@novadaq.com
Investor Relations:
Michael Moore
The Equicom Group
Phone: 416-815-0700 x 241
mmoore@equicomgroup.com
