March 10, 2003 – SpectRx Inc. sold its microsystems-based BiliChek product line to Respironics Inc., according to a news release.
Respironics, which had been the exclusive U.S. licensee and distributor of the line, bought it for $4 million with an additional $1 million after current product development work is done. Additionally, it could pay up to $6.5 million in royalties and other earn-out payments in the next five years, based on certain operating results, the release said.
SpectRx said it’s selling BiliChek, which contains a microspectrometer to measure bilirubin levels in newborns, to focus on expanding its diabetes and cancer detection businesses. The microspectrometers, developed for SpectRx by Germany-based STEAG microParts GmbH, analyze light reflected from the baby’s forehead to check for jaundice.
Proceeds from the sale will go in part to developing a continuous glucose monitoring skin patch, which also incorporates microspectrometer technology from STEAG.