A Diagnostics & Imaging Week
Scivanta Medical (Spring Lake, New Jersey) has received the final payment of $2.55 million from Syntho Pharmaceuticals (Farmingdale, New York) and its principal owner, Muhammed Malik (collectively, the Syntho Group), related to a settlement entered into among Scivanta, the Syntho Group and other related parties on Nov. 22, 2006.
The settlement agreement was entered into to resolve the litigation among these parties with respect to Scivanta’s exclusive right to distribute the hormone replacement therapy drug, Syntest.
Syntho Group agreed to pay the company $3.1 million, of which $250,000 was paid in connection with the execution of the settlement agreement, $300,000 paid during the three month period following the settlement, and $2.55 million paid on March 27.
David LaVance, president/CEO of Scivanta, said, “Receiving the final payment from the Syntho Group ends many years of litigation surrounding the distribution of the hormone replacement therapy drug, Syntest.”
He said the funds will be used for working capital purposes and to support the development of the Hickey Cardiac Monitoring System [HCMS], a minimally-invasive two-balloon esophageal catheter system used to monitor cardiac performance. The company has acquired exclusive worldwide rights to develop and sell technologies known as the HCMS, a device designed to provide primary measurements of cardiac performance in a minimally invasive manner outside an intensive care setting.
The company said that the funds also will support its plan to identify new technologies and products for possible acquisition.
As it develops the HCMS, Scivanta said it will continue to review for purchase other medical technologies for specialty or niche markets.
In other legalities: EP MedSystems (West Berlin, New Jersey) reported that it has executed a settlement with the U.S. Department of the Treasury related to its shipment of products to restricted countries in 2004 and earlier.
The company, not admitting or denying guilt, agreed to pay the government $33,000, with no restrictions on commercial or export activities.
The company said it accrued $44,000 for this penalty as of Sept. 30, based on the oral representations at the time.
In November 2006, the company reported executing a $244,000 settlement with the Bureau of Industry and Security of the U.S. Department of Commerce related to the same issues.
In October 2006, the company’s board terminated Reinhard Schmidt as president/CEO and COO for possible violation of U.S. law in the sales and the accuracy and completeness of statements filed with the Department of Commerce related to those sales.
”We are pleased to put the issues with both the Departments of Commerce and Treasury behind us and focus on the market opportunities for EP MedSystems,” said David Bruce, EP MedSystems’ president/CEO.
EP MedSystems develops cardiac electrophysiology products used in visualizing, diagnosing and treating cardiac rhythm disorders.