EMPI FINALIZES INVESTMENT AND TEST MARKETING AGREEMENT FOR TWO INCONTINENCE PRODUCTS DEVELOPED BY MEDAMICUS, INC.
ST. PAUL, Minn., Nov. 10 /PRNewswire/ -- Empi, Inc. (NASDAQ-NMS: EMPI), a medical device manufacturer, today announced that it has completed an agreement to test market two urodynamic diagnostic screening products developed by Minneapolis-based MedAmicus, Inc. (NASDAQ: MEDM). Upon successful completion of test marketing, the companies will sign an agreement granting Empi worldwide distribution rights. Under terms of the agreement, Empi will pay $250,000 to MedAmicus in exchange for 62,500 shares of MedAmicus stock. In addition, Empi will receive warrants to purchase another 62,500 shares over the next five years, at a price of $6 per share. "We are excited about the potential of this agreement with MedAmicus," said Donald Maurer, Empi's chairman. "Our objective is to further strengthen our presence in the growing incontinence market. This transaction provides us with additional opportunities for growth." Both MedAmicus products are in the final stages of development. The Lumax(TM) dual channel fiber-optic cystometry system includes a monitor and catheter. It measures pressure in the bladder and urethra to diagnose and measure the severity of urge and stress incontinence, and mixtures of the two. The second product is an interface system which can connect the Lumax system with other diagnostic equipment. Empi will test market the MedAmicus products. Upon successful completion of this test, Empi will sign a 10-year agreement for exclusive worldwide distribution rights to the Lumax dual channel cystometry system, and a one-year agreement for non-exclusive rights to the interface system. Empi will then invest an additional $500,000 in MedAmicus stock; the price of those shares will be 90 percent of the bid price at the time the agreement is signed, or $5.40 per share, whichever is lower. Empi plans to work with physicians to establish initial screening for incontinence using the MedAmicus products, and to develop treatment programs that utilize Empi's electromyography (EMG) biofeedback products and the
INNOVA(R) Feminine Incontinence Treatment System.
Empi, Inc., develops, manufactures and distributes non-invasive biomedical devices and accessories for electro-therapeutic applications in physical medicine, orthopedic, rehabilitation, urogynecology and neurology markets. The company's shares are traded on the NASDAQ national market system under the symbol EMPI. -0- 11/10/93 /CONTACT: Diane Rose or Marian Briggs of Padilla Speer Beardsley, 612-871-8877, for Empi; or Timothy Briggs of Empi, 612-639-2330/ (EMPI MEDM)
CO: Empi, Inc.; MedAmicus, Inc. ST: Minnesota IN: MTC SU: CON
DB-AL -- MN005 -- 2624 11/10/93 09:19 EST
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|Date:||Nov 10, 1993|
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