A Diagnostics & Imaging Week

Biophan Technologies (West Henrietta, New York) reported that it has entered into a purchase agreement to acquire a substantial minority interest in Myotech (Dedham, Massachusetts), developer of the MYO-VAD cardiac assist device.

Biophan, which already has a marketing and development accord with Myotech, now has the option to acquire additional equity in that company, up to a majority ownership position.

The MYO-VAD is designed to be implanted in a matter of minutes in patients experiencing many types of heart failure. It is the first heart-assist device designed to restore full cardiac output to an arrested heart without coming into contact with circulating blood, thereby providing the potential to significantly reduce serious and often fatal complications such as bleeding, clotting and stroke, and infection – problems that plague current heart-assist devices.

“This agreement will enable us to accelerate the development and commercialization of the MYO-VAD cardiac assist device, a significant technology that has the potential to vastly improve the treatment of heart failure with far higher levels of safety and effectiveness than are currently possible,” said Michael Weiner, Biophan CEO. “As we have previously indicated, we believe that this device has the potential to generate $100 million in annual revenue for Biophan in approximately five years, prior to which time Biophan expects to hold a majority position in Myotech.”

Under the terms of the purchase agreement, Biophan’s minority interest of about 40% would be acquired in exchange for roughly 4.9 million shares of Biophan stock and a cash payment of $2.225 million over a six-month period.

Biophan has the option to acquire up to 54% interest in Myotech for cash over the next two years.

Myotech said it expects the product to enter human clinical trials within about two years and that it will seek a distribution relationship with a major device company within 12 to 24 months.