A Medical Device Daily
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.