Video-capsule developer Given Imaging of Yoqneam, Israel, reported that InScope, a division of Ethicon Endo-Surgery, has ended its agreement to market and sell Given Imaging's PillCam ESO, a capsule endoscope, in the U.S. The original agreement between the two firms was brokered in May 2004.
Ethicon Endo-Surgery, a Johnson & Johnson company, attributed its decision to a shift in its priorities within gastroenterology. InScope will pay Given Imaging $7.6 million in fees associated with ending the agreement. InScope will also continue to support reimbursement activities for PillCam ESO and continue its market development field staff for up to six months, Given Imaging said. InScope has also agreed to continue funding clinical trials associated with esophageal diseases.
As a result of the termination of the agreement with InScope, Given Imaging will record income of $13.5 million in the fourth quarter of 2007 and additional income of $12.5 million during the first two quarters of 2008.
By AuntMinnie.com staff writers
November 8, 2007
Related Reading
Given Imaging reports Q3 revenue boost, November 1, 2007
Given Imaging gets FDA nod for esophagus imaging pill, June 18, 2007
Given gets FDA OK for real-time device, June 13, 2006
FDA clears new Given software version, December 6, 2005
Given Imaging's sales up in Q3, November 8, 2005
Copyright © 2007 AuntMinnie.com
