|Konica Minolta Opto, Inc. Extends Product Development Licensing Agreement with $750,000 Payment to Guided Therapeutics|
Press Release Source: Guided Therapeutics, Inc. On Wednesday March 30, 2011, 9:05 am EDT
NORCROSS, Ga.--(BUSINESS WIRE)-- Guided Therapeutics, Inc. (OTCBB & OTCQB: GTHP), developer of a rapid and painless biophotonic testing platform for the early detection of disease, today announced that Konica Minolta Opto, Inc. of Tokyo has extended its licensing agreement to co-develop non-invasive cancer detection products.
Under terms of the agreement, Konica Minolta Opto will pay Guided Therapeutics a $750,000 fee to extend the agreement for one year. This is in addition to approximately $1.7 million the company expects to receive, over the course of the next 12 months, for the co-development of its first product in conjunction with Konica Minolta Opto for the detection and monitoring of esophageal pre-cancer called Barrett’s esophagus.
The products being developed with Konica Minolta Opto are based on the company’s non-invasive cervical disease detection technology, which is undergoing the U.S. Food and Drug Administration’s premarket approval process. In addition to the Barrett’s esophagus product, Konica Minolta Opto retains the rights to apply the technology to lung cancer.
“We continue to enjoy a strong working relationship with Konica Minolta Opto and believe that the continuation of our licensing agreement will likely lead to the first product line extension to be built upon our non-invasive cancer scanning platform technology,” said Mark L. Faupel, Ph.D., President and CEO of Guided Therapeutics, Inc. “With the recent approval to begin human clinical studies, we expect to begin enrolling subjects in the second or third quarter of this year, which will be a key milestone for the company.”
“We are pleased to continue our relationship with Guided Therapeutics to co-develop and market non-invasive cancer detection products,” said Akira Suzuki, General Manager, LC Business Department for Konica Minolta Opto. “We believe that these new technologies have the potential to improve the early detection of disease which is proven to save lives.”
According to the World Health Organization (WHO), esophageal cancer ranks just below cervical cancer in newly diagnosed cases. New cases of esophageal cancer are estimated at 410,000 worldwide, with more than 16,000 new cases a year and more than 14,000 deaths in the U.S. alone. Barrett’s esophagus is believed to be caused by excessive acid reflux.