MEMPHIS, Tenn., Aug. 10, 2005 (PRIMEZONE) -- Luminetx Corporation, a leading developer and marketer of bioscience technologies, including its patented infrared vein imaging system, VeinViewer(tm), announced today a 3-year distribution agreement with Diomed Holdings, Inc. (AMEX:DIO), an industry leader in the area of minimally invasive medical technologies, including its patented EVLT(r) for varicose veins.
The agreement, which provides exclusive distribution rights to the schlerotherapy, phlebectomy and varicose vein treatment markets in the United States and United Kingdom and includes both a $1 million investment in Luminetx and a grant of 600,000 Diomed warrants, is expected to generate a minimum of $16 million in Luminetx revenues over the term of the agreement.
"We looked at several companies working in the schlerotherapy and phlebectomy arenas, and chose Diomed as our distribution partner because we believe they have the winning technology," said Jim Phillips, CEO of Luminetx. "We were also very impressed with the caliber of the management team at Diomed."
Hailed by Time magazine as "one of the most amazing medical inventions of the year," VeinViewer is a breakthrough device that will revolutionize medical procedures and improve the quality of global health care. The visionary product is a venous imaging system that uses infrared light and other patented technologies to project a real-time image of subcutaneous veins directly onto the surface of a patient's skin.
"We believe that the Luminetx VeinViewer is an important adjunct to our core EVLT business and will enhance our competitive advantage in the treatment of venous disease," said James A. Wylie, president and CEO of Diomed Holdings, Inc. "Additionally, as vein treatment continues its move from the hospital to outpatients facilities and physician offices, we expect to leverage our existing sales and marketing organization by offering physicians an array of medical tools for the treatment of superficial venous disorders, from reflux of the GSV to unsightly spider veins."
VeinViewer, which was cleared by the FDA in 2004, is undergoing key clinical evaluations in physician offices in both the U.S. and South America. Steven E. Zimmet, MD, FACPh, is the President of the American College of Phlebology. "The first time I saw the VeinViewer in action I was astounded by what I saw," he says. "It is clear to me that the VeinViewer will be a very useful tool in my everyday phlebology practice."
Roberto Kasuo Miyake, MD, PhD, is a noted international researcher and expert schlerotherapist and vascular surgeon at the Clinica Miyake in Sao Paulo, Brazil. He is a frequent presenter at international medical conferences and was inducted as a Fellow in the American Society for Laser Medicine and Surgery this year. "VeinViewer has been a key component of our treatment protocols, and has radically improved our patient outcomes," Miyake said. "With VeinViewer, the marks are exact, which eliminates the need for 'fishing,' reduces additional trauma to the area and actually allows patients to heal faster."
Steve Elias, MD, director of the Center for Vein Disease at Englewood Hospital and Medical Center adds, "VeinViewer not only allows physicians better visibility of veins targeted for treatment, but also provides verification of full and complete treatment. VeinViewer fulfills a basic surgical principle -- if I can see it, I can do it." Elias is also an assistant professor of surgery at Mt. Sinai School of Medicine in New York City and a Fellow in the American College of Surgeons.
Phillips notes that Luminetx is attracting the interest of key thought leaders in phlebology, schlerotherapy, dermatology, phlebotomy, pediatric venapuncture (i.e., blood collection, IV-PICC line insertions), interventional radiology, plastic surgery and a number of segments where venous access is critical to patient comfort and practitioner success.
"We're seeing an enormous variety of applications and opportunities for VeinViewer technology among large physician practices," Phillips says. "We believe that this pivotal partnership will be the industry genesis of a bright future for VeinViewer, as well as for the patients and physicians who will benefit from this innovative imaging technology. We are in discussions with numerous health care manufacturers, distributors and providers worldwide for other applications of VeinViewer breakthrough technology."
Diomed plans to display the VeinViewer at several upcoming medical meetings this fall, including the American College of Surgeons Annual Clinical Congress in San Francisco (Oct. 16-20), the 19th Annual Congress of the American College of Phlebology meeting also in San Francisco (Nov. 10-13) and the VEITH Symposium in New York City (Nov. 17-20).
The VeinViewer is expected to be available for general distribution in the first quarter of 2006. Additional information about VeinViewer can be found at www.Luminetx.com and www.DiomedInc.com.
About Luminetx Corporation
Headquartered in the biotech district of Memphis, Tenn., Luminetx Corporation discovers, develops and commercializes bioscience technologies in the digital imaging, SCM, nanotech, wireless and IP communications arenas. Luminetx consists of experienced scientific, technological and business leadership committed to their vision. President, CEO and Chairman of the Board James M. Phillips has enjoyed an outstanding career starting and guiding companies through successful IPO's and pioneering new technologies into major industry leading positions. Luminetx's premier product, VeinViewer, an infrared vein imaging system, was recognized by Time magazine as "one of the most amazing medical inventions of the year."
About Diomed Holdings, Inc.
Diomed develops and commercializes minimally invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed focuses on EndoVenous Laser Treatment (EVLT) for use in varicose vein treatments, photodynamic therapy (PDT) for use in cancer treatments, and dental and general surgical applications. The EVLT procedure and the company's related products were cleared by the United States FDA in January 2002. Along with lasers and single-use procedure kits for EVLT, the company provides its customers with state of the art physician training and practice development support. Additional information is available on the company's website, www.evlt.com. EVLT is a registered trademark of Diomed, Inc., Andover, MA.