Cyberkinetics to acquire Andara Life Science, gain proprietary technology

By Lisa Kerner

Erie, Pa., Feb. 15 - Cyberkinetics Neurotechnology Systems, Inc. said Wednesday it will acquire Andara Life Science, Inc. This agreement is the result of a merger with a wholly owned subsidiary of Cyberkinetics.

The subsidiary will acquire all of the outstanding capital stock of Andara in exchange for $3.075 million of unregistered shares of Cyberkinetics common stock, subject to contractual restrictions, and $1.5 million of unregistered restricted stock, subject to forfeiture.

The merger, approved unanimously by the boards of directors of both companies, will close upon the filing of merger documentation in Delaware and Indiana, according to a company news release.

Mark Allen Carney, president and chief executive officer of Andara, has joined Cyberkinetics as executive vice president and director.

Richard Ben Borgens, Ph.D, chief scientific officer of Andara and a professor and director of the Center for Paralysis Research at Purdue University, will become a scientific adviser to Cyberkinetics.

Cyberkinetics expects to submit an application for approval of Andara's lead product, the Andara Oscillating Field Stimulator (OFS Device) in 2006 under a Humanitarian Device Exemption.

The exemption request is based on a recently completed 10-participant clinical trial for those with acute spinal cord injury, as well as preclinical studies that demonstrated the device's ability to stimulate regeneration of nerve fibers in the spinal cord.

The Andara OFS Device potentially addresses the following neural stimulation markets: traumatic brain injury, stroke, peripheral nerve damage and spinal cord injury. Analysts currently estimate that the market for neural stimulation devices exceeds $1.6 billion annually.

"We are excited about the opportunity to combine Cyberkinetics' innovative brain interface technology with Andara's proprietary neural stimulation therapy to build a leading neurotechnology company," Carney said in the news release.

Andara is engaged in the development of a portfolio of programs, developed at the Center for Paralysis Research at Purdue University, related to the repair and regeneration of neural tissues. The company is located in Indianapolis.

Cyberkinetics is developing neural stimulation, sensing and processing technology to improve the lives of those with severe paralysis resulting from spinal cord injuries, neurological disorders and other nervous system conditions. The company is based in Foxborough, Mass.

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