Spectral Diagnostics Inc. and Baxter Diagnostics Inc. havefinalized the details of their $17 million strategic alliance oncardiac diagnostic research and marketing.
Baxter Diagnostics, a subsidiary of Baxter International(NYSE:BAX), signed the letter of intent with Spectral(NASDAQ:DIAGF) in early July. The companies finalized theterms Tuesday.
Baxter may acquire up to 15 percent equity in Spectral, on afully diluted basis, representing an investment of $17 million.Baxter also bought $1 million worth of Spectral common stockat $16.50 per share (about 60,600 shares).
The agreement also provides that Spectral may require Baxterto exercise warrants to purchase $3.2 million of common stockupon the achievement of certain FDA regulatory milestones.
Baxter will provide distribution and marketing expertise andreceive exclusive rights in North America and South America toone of Spectral's cardiac panel tests. Baxter also receives theexclusive right of first offer for distribution rights for otherterritories and other diagnostic products as Spectral developsthem.
Spectral of Toronto is developing panel tests with one or moreof the cardiac markers myoglobin, myosin light chain, CK-MBand troponin-I. The tests, slightly larger than a credit card,provide a diagnosis in about eight minutes. Spectral believesthe tests can distinguish non-heart ailments from heartconditions and unstable angina from heart attack.
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