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Cyberonics On Its Own

Executive Summary

Having rejected a bid by Medtronic, Cyberonics believes its epilepsy business is the basis for much bigger opportunities. Cyberonics holds key method patents on a device for vagus nerve stimulation, which it refers to as an "implantable pacemaker for the brain." It believes the technology has far-reaching clinical applications for neurological disorders traditionally treated by drugs. A body of literature demonstrates the product's efficacy and ease of use in selected epilepsy patients. The product has been FDA approved and on the market since 1997. However, Cyberonics has yet to prove its device will work in broader applications like depression, which have larger markets but also significant competition from drugs.
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