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July 21, 2005

Pitt, UPMC realize profit from commercialized technology

Royal Philips Electronics this month announced that it will acquire Stentor, Inc., a leading provider of medical image and information management systems for storing, managing and distributing digital radiology images. Philips will pay approximately $280 million for Stentor, subject to regulatory approval.

Pitt and UPMC participated in the financing of Stentor through investments in Lancet Capital (formerly Caduceus Capital), and as direct investors. Pitt 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,” said Chancellor Mark A. Nordenberg.

“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 Paul Chang, professor of radiology in the School of Medicine and director, Division of Radiology Informatics at UPMC.

The technology, PACS (picture archiving and communication systems), is used for storing, managing and distributing digital radiology images. Pitt licensed the technology to Stentor, and entered into a contract for further development of the technology.

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.

Pitt’s technology transfer strategy focuses on the protection, development and commercialization of University technology through licensing and participation in the development of new companies. The result was the formation of eight companies in 2003 and 10 in 2004.

Marc S. Malandro, director of Pitt’s Office of Technology Management, said: “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.”

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