SciSparc Ltd. (NASDAQ: SPRC) declared on Tuesday the execution of a definitive agreement to obtain a collection of intellectual property focusing on medical endoscopy. The company disclosed that this acquisition encompasses a suite of patents, trademarks, and associated rights integral to endoscopic systems and medical imaging devices.
Highlighting the portfolio's significance, SciSparc noted inclusion of intellectual property aligned with the MUSE endoscopic system, a platform tailored toward minimally invasive medical procedures. This expansion represents a notable evolution from SciSparc's existing operations, which primarily involve clinical-stage pharmaceutical and technology development activities conducted via its majority-owned subsidiary, NeuroThera Labs Inc.
By integrating these medical device assets, SciSparc aims to extend its business scope beyond pharmaceuticals, accelerating its commercialization agenda within the healthcare technology sector. The transaction is expected to potentially diversify the company's offerings and revenue streams, allowing penetration into new medical submarkets.
In outlining the forthcoming commercial strategy, SciSparc stated an intention to initiate market introduction of the newly acquired technologies promptly after closing. The company plans to mirror proven distribution and sales models previously utilized to attain market adoption, adapting those frameworks to the endoscopy-related products.
Moreover, SciSparc is considering collaborative expansion via licensing arrangements and forging regional partnerships. Targeted regions for commercial reach include North America, Europe, and Latin America, which are recognized growth zones for medical technology deployment.
Under the binding agreement, SciSparc will compensate the seller at closing with ordinary shares representing approximately 19.99% of the company's outstanding equity. The arrangement provides SciSparc with discretion to substitute a portion of these shares with pre-funded warrants, offering flexibility in structuring the payment.
Finalization of the acquisition is contingent on customary closing conditions, including requisite regulatory approvals, which the company anticipates satisfying ahead of an expected closing date no later than March 8, 2026.
Market analyses have signaled robust growth projections in the global gastroesophageal reflux disease (GERD) device sector, propelled by increasing demand for advanced endoscopic systems. SciSparc's acquisition could thus position it to leverage favorable market trends by diversifying into complementary medical device technologies.
Despite the strategic potential, SciSparc's stock price experienced a decline on the announcement day, trading down 12.07% to $1.27. The company’s share movement reflects market reactions and possibly investor assessment of the acquisition's immediate financial impact.
Overall, this transaction marks an important step in SciSparc's evolution as it transitions toward a more integrated healthcare technology provider, blending pharmaceutical innovation with medical device advancements.