Biophan Sells Patents to Medtronic for $11 Million

Biophan Technologies, a Pittsford, NY-based imaging company, has agreed to sell its MRI-safety patents to Medtronic for $11 million. The company will turn over a portfolio of devices — which includes pacemakers, defibrillators and neurostimulators — that, unlike many implantable devices on the market, are compatible with MRI.

“Our technology has the potential to solve the problems that have prevented many people with pacemakers from having an MRI,” said Biophan president Michael Weiner. “We believe Medtronic has the experience and resources to bring our technology to market.”

In May, Weiner resigned from the CEO post when Biophan formed an executive committee to oversee daily operations. He stayed on as president.

Biophan will continue its efforts to develop technologies to enable visualization of clotting and restenosis in stents under MRI, which is not possible with today’s stents. In addition, it will continue its collaboration with Myotech on the development of the Myotech Circulatory Support System, a heart pump that does not come in contact with blood — because of this, the system has the potential to reduce many of the complications that plague existing devices, such as clotting and stroke, bleeding, and infection.

In fiscal 2006, Biophan exceeded $1 million in revenue from licensing, MRI testing and consulting to the industry, plus additional revenue that will be recognized in the next fiscal year. This was accomplished primarily through the company’s licensing agreement with Boston Scientific, which covers multiple uses for MRI safety and image compatibility; the deal has generated over $1 million in cash payments to date.