Synergetics extends Stryker deal, ends suit
This article was originally published in Clinica
Executive Summary
O'Fallon, Missouri-based Synergetics USA has extended its exclusive worldwide agreement with Stryker for the distribution of its radiofrequency generator for the percutaneous treatment of pain. The original five-year agreement was due to end December 31 2009 but has now been prolonged by an extra year. The contract renewal also includes an increased minimum purchase obligation for each remaining year. The Stryker collaboration provided Synergetics with about $2m in sales for the nine months ended April 30 2007, approximately 6% of total sales for the period. Separately, Synergetics has announced that a US court has dismissed two former employees' claim to vacate a post-judgement motion made in favour of the company relating to allegations that they interfered in the company's business relationships (see Clinica No 1175, p 16). However, the court agreed with Charles Hurst and Michael McGowan's claims that Synergetics had engaged in "improper pre-trial conduct", and awarded them $1.17m in sanctions, which Synergetics will draw out of the original damages of $2.35m.