Commercialization of University of Pittsburgh Intellectual Property Leads to Successful Sale of Healthcare IT Company Stentor to Philips Electronics
PITTSBURGH, July 8 - Royal Philips Electronics announced yesterday that it will acquire Stentor, Inc., a leading provider of enterprise-wide medical image management systems for storing, managing and distributing digital radiology images. Philips will pay approximately $280 million for Stentor, subject to regulatory approval. The University of Pittsburgh and the University of Pittsburgh Medical Center (UPMC) participated in the financing of Stentor through investments in Lancet Capital (formerly Caduceus Capital), and as direct investors in the company. The University received equity in the company both as consideration for the licensing of the technology and in return for its direct investments.
"Critical to the successful creation, development, and sale of Stentor were the sustained efforts of researchers and technology transfer professionals at both the University and the UPMC," stated Mark A. Nordenberg, Chancellor of the University of Pittsburgh. "For many years, Pitt and the UPMC have received widespread recognition for their successes in supporting pioneering research, sponsoring educational programs of the highest quality, and delivering world-class health care. The Stentor transaction provides clear evidence of our emerging impact in the commercialization of technology."
Stentor was formed in 1998 to commercialize novel intellectual property developed in the laboratory of Dr. Paul Chang, professor of Radiology in the University of Pittsburgh School of Medicine and director, Division of Radiology Informatics at the UPMC. The technology, PACS (picture archiving and communication systems), is used for storing, managing, and distributing digital radiology images throughout hospitals and healthcare facilities. The University licensed the technology exclusively to Stentor, and entered into a multi-year sponsored research contract for further development of the technology.
Over the course of the last seven years, the UPMC invested over $9 million in Stentor and stands to realize more than $45 million from that investment. The University invested $1 million and stands to realize more than $10 million in proceeds from equity received from the license agreement and from the investment.
The University's technology transfer strategy focuses on the protection, development, and commercialization of University technology through licensing and participation in the development of new companies. These activities have resulted in the formation of eight new companies in 2003 and 10 in 2004.
"The acquisition of Stentor represents the successful implementation of the technology transfer and intellectual property strategy taken at the University," said Dr. Marc S. Malandro, Director of the University's Office of Technology Management. "The University is committed to facilitating the development of products from the research efforts of our faculty that have a tangible impact on society and human health."
Contact:
Marc Malandro
Director
Office of Technology Management
University of Pittsburgh
(412) 624-8787
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