Source Link - Cochlear Buys Otologics Technology Patents For US$25M
Cochlear Ltd. (COH.AU), the world's largest producer of inner ear implants, said Wednesday it agreed to buy patent rights from closely held Otologics LLC for use in its devices for US$25 million.
The Sydney-based company also will engage in joint development activities with the Boulder, Colorado, medical device company, it said in a statement.
Cochlear Chief Executive Chris Roberts said the acquisition and development agreement were steps in achieving the company's long-term goal of a totally implantable cochlear implant.
The purchase price is payable over the period to Dec. 31, 2011, with US$8.5 million having been paid by June 30, 2009, plus a royalty on future sales of certain products involving an implantable microphone, Cochlear said.
The full US$25 million will be treated as acquired intangibles and amortized over about 15 years, it said.