UPDATE 1-Vision Sciences signs 3-year supply deal with Stryker
* To get prepayment of $5 mln for urology products
* Stryker to get exclusive distribution rights
* Vision Sciences shares up as much as 20 pct
Sept 22 (Reuters) - Endoscopy device-maker Vision Sciences Inc (VSCI.O) said it has signed an exclusive three-year agreement to supply its urology products to Stryker Corp (SYK.N), sending the smaller device maker's shares to a new 52-week high.
Under the terms of the deal, Stryker will pay Vision Sciences a prepayment of $5 million, of which $2.5 million is due at signing and $2.5 million will be due on or before March 31, 2011.
The deal gives Stryker exclusive rights to distribute urology-related endoscopy products that use Vision Sciences' patented technology in North and Latin America, South America, China and Japan.
Endoscopy is the science of using an instrument, known as an endoscope, to provide minimally invasive access to areas not readily visible to the human eye.
Vision-Sciences said it will use the $5 million to purchase technology. Stryker will make further payments to Vision-Sciences for products supplied.
The company said it will also supply Stryker with flexible ureteroscopes upon launch, which is expected in 2011.
Vision Sciences shares, which have gained about 28 percent since it reported first-quarter results on Aug. 11, were trading up 3 percent at $1.51 Wednesday morning on Nasdaq. They touched a 52-week high of $1.77 earlier in the session. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Roshni Menon)
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