Dec 12 2009
Hansen Medical, Inc. (NASDAQ: HNSN)
announced today that it has entered into a Confidential Settlement
Agreement (the "Settlement Agreement") with Luna Innovations Incorporated
(NASDAQ: LUNA) and its wholly-owned subsidiary, Luna Technologies, Inc. The
settlement agreement is designed to resolve all pending claims between the
parties stemming from Hansen Medical's suit against Luna in California
Superior Court, as well as litigation between the parties stemming from
Luna's bankruptcy filing in the Western District of Virginia. The
settlement agreement contemplates that, subject to certain conditions
including Luna's emergence from bankruptcy, Hansen Medical, Luna and
Intuitive Surgical, Inc. (NASDAQ: ISI), shall enter into agreements
including the following:
-- Luna to issue to Hansen Medical a $5,000,000 Secured Promissory Note
secured by a Security Agreement and Patent and Trademark Security
Agreement;
-- Luna to issue to Hansen Medical shares of Common Stock equal to 9.9
percent of Luna's outstanding capital stock after issuance. In addition,
Luna will grant Hansen Medical a warrant to purchase additional shares of
Luna's Common Stock for three years after the Effective Date, at a purchase
price of $0.01 per share, to the extent necessary for Hansen Medical to
retain its ownership of 9.9 percent of Luna's outstanding capital stock;
-- License of certain Luna intellectual property to Hansen Medical;
-- Intuitive Surgical to enter into a Cross License Agreement with Hansen
Medical with respect to certain fiber optic shape sensing and localization
technology; and
-- Luna to develop a fiber optic shape sensing and localization solution
for Hansen Medical under a Development and Supply Agreement, including a
discount for future purchases with an aggregate limit comparable to the
amount of Hansen Medical's Secured Promissory Note.
"We are pleased to successfully resolve our outstanding litigation with
Luna and we are looking forward to partnering with Luna in developing
important new medical devices that utilize Luna's fiber optic shape sensing
technology," said Frederic Moll, M.D., president and CEO, Hansen Medical.
"The intellectual property agreements between Hansen Medical, Luna and
Intuitive Surgical will further the development of this technology and its
application in the delivery of therapeutic treatments, which will benefit
both physicians and patients," continued Dr. Moll.
We believe fiber optic shape sensing and localization technology can
provide real-time position measurements to help surgeons navigate through
the body. The system consists of software, instrumentation and disposable
optical sensing fibers. The technology, originally developed at NASA, is
unique and designed to provide the user with an accurate, direct and
continuous measurement of device location with no adverse effect from line
of sight limitations, and without introducing electrical charge or
radiation into the body.
SOURCE: Hansen Medical, Inc.