Cyberonics enters agreement with NeuroVista for epilepsy technology development program

Cyberonics, Inc. (Nasdaq: CYBX) today announced that it has entered into additional agreements with NeuroVista Corporation in the field of EEG-based seizure detection to build on its position as the leader in medical devices for epilepsy.

In October 2009, the company announced that it had licensed NeuroVista technology related to a seizure detection algorithm, a rechargeable battery system, wireless communication, and an implantable lead.  In July 2010, the company entered into additional agreements with NeuroVista Corporation, licensing technology related to an external charging system for an implanted battery and agreeing to invest $5.0 million in the form of a convertible note.  The convertible note investment closed on August 18, 2010, contemporaneous with the closing of an equity finance round with proceeds of $16.5 million from one new and three existing investors in NeuroVista.

NeuroVista, based in Seattle, Washington, is an early-stage medical device company pioneering new technologies in the management and treatment of epilepsy, including a novel Seizure Advisory System™.

"Our technology collaborations with NeuroVista over the past year have proved to be very productive.  We expect that this additional collaboration will further accelerate our technology development program, while the investment will enable NeuroVista to pursue its clinical studies involving the NeuroVista® Seizure Advisory System™," said Dan Moore, Cyberonics' President and Chief Executive Officer.

"Combining our NeuroVista technology collaborations with our research and development commitments in cardiac-based seizure detection provides a unique, broad-based approach to developing devices capable of detecting seizures in patients with epilepsy.  We are excited that another leader in the field of devices for epilepsy has chosen to join us in helping to improve the lives of patients with epilepsy," concluded Mr. Moore.