A Medical Device Daily

Synergetics USA (O’Fallon, Missouri) reported that it has extended a contract with Stryker (Kalamazoo, Michigan).

On Oct. 25, 2004, Synergetics USA’s predecessor, Valley Forge Scientific, executed a supply and distribution agreement with Stryker, which provides for the company to supply to Stryker and for Stryker to distribute exclusively, on a world-wide basis, a radio frequency (RF) generator for the percutaneous treatment of pain. The original agreement was for a term of five years beginning on Nov. 11, 2004 and ending on Dec. 31, 2009.

On Aug. 1, the companies negotiated a one-year extension to the contract date and an increased minimum purchase obligation per year for the remaining contract period.

Net sales to Stryker amounted to about $2 million for the nine months ended April 30, 2007 which represents 6% of net sales for that time period.

“We are very pleased with the one-year contract extension and we continue to work hand in hand with Stryker to develop additional features for the domestic pain control generator and on a generator for international distribution as well,” said Gregg Scheller, president/CEO of Synergetics USA. “This is a prime example of how we want to explore opportunities for growth through strategic partnering with quality companies that have complimentary products and technologies.”

Synergetics USA resulted from the September 2005 combination of Valley Forge Scientific and Synergetics, bringing together their respective capabilities in bipolar electrosurgical generators and design, and manufacture of microsurgical hand instruments. Synergetics USA makes medical devices for use primarily in ophthalmic surgery and neurosurgery and for other healthcare applications.