Cyberonics reneged on its "Lifetime Reimbursement Guarantee". Click on the image to learn how you can help...
Showing posts with label AspireSR. Show all posts
Showing posts with label AspireSR. Show all posts

Saturday, August 16, 2014

The re-organization of functional brain networks in pharmaco-resistant epileptic patients who respond to VNS.

Neurosci Lett. 2014 Aug 11. pii: S0304-3940(14)00651-X. doi: 10.1016/j.neulet.2014.08.010. [Epub ahead of print]

The re-organization of functional brain networks in pharmaco-resistant epileptic patients who respond to VNS.

Fraschini M1, Demuru M2, Puligheddu M3, Floridia S2, Polizzi L4, Maleci A3, Bortolato M5, Hillebrand A6, Marrosu F7.

Author information
  • 1Dipartimento di Ingegneria Elettrica ed Elettronica, Università di Cagliari, Italia. Electronic address: fraschin@unica.it.
  • 2Dipartimento di Ingegneria Elettrica ed Elettronica, Università di Cagliari, Italia.
  • 3Dipartimento di Sanità Pubblica, Medicina Clinica e Molecolare, Università di Cagliari, Italia.
  • 4Azienda Ospedaliero Universitaria di Cagliari, Italia.
  • 5Department of Pharmacology and Toxicology, School of Pharmacy, University of Kansas, Lawrence (KS), USA.
  • 6Department of Clinical Neurophysiology and Magnetoencephalography Center, Neuroscience Campus Amsterdam, VU University Medical Centre, Amsterdam, The Netherlands.
  • 7Dipartimento di Sanità Pubblica, Medicina Clinica e Molecolare, Università di Cagliari, Italia; Azienda Ospedaliero Universitaria di Cagliari, Italia.
Abstract

Vagal nerve stimulation (VNS) is a therapeutic add-on treatment for patients with pharmaco-resistant epilepsy. The mechanism of action is still largely unknown. Previous studies have shown that brain network topology during the inter-ictal period in epileptic patients deviates from normal configuration. In the present paper, we investigate the relationship between clinical improvement induced by VNS and alterations in brain network topology. We hypothesize that, as a consequence of the VNS add-on treatment, functional brain network architecture shifts back towards a more efficient configuration in patients responding to VNS. Electroencephalographic (EEG) recordings from ten patients affected by pharmaco-resistant epilepsy were analyzed in the classical EEG frequency bands. The phase lag index (PLI) was used to estimate functional connectivity between EEG channels and the minimum spanning tree (MST) was computed in order to characterize VNS-induced alterations in network topology in a bias-free way. Our results revealed a clear network re-organization, in terms of MST modification, towards a more integrated architecture in patients responding to the VNS. In particular, the results show a significant interaction effect between benefit from VNS (responders/non-responders) and condition (pre/post VNS implantation) in the theta band. This finding suggests that the positive effect induced by VNS add-on treatment in epileptic patients is related to a clear network re-organization and that this network modification can reveal the long debated mechanism of action of VNS. Therefore, MST analysis could be useful in evaluating and monitoring the efficacy of VNS add-on treatment potentially in both epilepsy and psychiatric diseases.

Copyright © 2014. Published by Elsevier Ireland Ltd.

KEYWORDS:

EEG; Epilepsy; Functional Network; Minimum spanning tree; PLI; Theta Band; Vagal Nerve Stimulation

PMID:
25123446
[PubMed - as supplied by publisher]

http://www.ncbi.nlm.nih.gov/pubmed/25123446

Saturday, February 22, 2014

Depression Likely The Biggest Incremental Driver For Cyberonics

Stephen Simpson, CFA, Kratisto Investing (253 clicks)

Long only, growth at reasonable price, value, research analyst

Send Message| Follow (2,249)

Depression Likely The Biggest Incremental Driver For Cyberonics

Feb. 5, 2014 1:49 PM ET  |  About: CYBX, Includes: BSX, MDT, STJ by: Stephen Simpson, CFA

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

This article was first released only to PRO subscribers. Learn More

Watching Cyberonics (CYBX) evolve over the years has been pretty compelling. I was part of a sell-side research team that covered the stock in the late 90s and early 00s and followed the company as it struggled to gain the acceptance of the FDA, physicians, and patients, not to mention overcome a particularly aggressive CEO. In more recent years, the company has settled into a solid growth trajectory driven by incremental market penetration and a very strong replacement cycle, while delivering impressive margins.

The question is what comes next. While I do believe the company's core addressable market in developed countries (epilepsy) remains significantly under-penetrated, I don't see that changing rapidly or dramatically. That puts even more significance on the under-developed opportunity in depression, where the company has only a limited opportunity to drive real change. Although these shares aren't all that expensive relative to other growth med-techs on the basis of multiples, it's going to take either accelerated penetration in epilepsy or upside in depression to drive a higher intrinsic fair value.

A Device-Based Approach To An Undertreated Disease

Cyberonics pioneered the use of vagus nerve stimulation (VNS therapy) to treat drug refractory epilepsy and it remains a market that the company essentially has all to itself in the U.S. Although epilepsy has been a recognized medical condition for quite some time, pharmaceutical companies have struggled to develop effective medications that don't also carry significant side effects or an impaired quality of life. With that, there are over 1.2 million people with epilepsy in developed markets (the U.S., EU, Japan and so on) that could benefit from the therapy offered by Cyberonics.

Cyberonics has developed a series of devices to deliver vagus nerve stimulation. In all cases the therapy involves a pulse generator (similar to a pacemaker/ICD) and a lead that connects the pulse generator to the left vagus nerve in the neck. The device can be implanted in an outpatient procedure (the generator is implanted in a subcutaneous pocket in the upper left chest) and it works by sending intermittent pulses of electricity to the left vagus nerve that reduce the frequency and severity of seizures. Physicians can adjust the therapy non-invasively, and patients can use a small magnet to manually adjust therapy if they sense an impending seizure.

How well vagus nerve stimulation works is a more subjective question than you might think. Clinical studies have shown that roughly one-quarter of patients see a 50% or greater reduction in seizure frequency after just one month, and more than one-third of patients achieve that level at one year. Side effects from the device are mild (hoarseness being the most common, and it usually improves with time) and the device can be removed when/if necessary.

Even so, the device does not often lead to a total cessation of seizures (about 10% to 15% of patients) and this is one of the more frequent complaints of doctors. While about 25% of patients drop out after the first implant expires (the devices last about five years on average), more than 90% of those who get a second implant stick with it thereafter.

Innovation And Replacements Drive Epilepsy

Acceptance of vagus nerve stimulation has never reached the levels that were hoped for in the 1990s, and this has historically been one of the bigger sources of volatility and complaint with the company/stock. Overall, Cyberonics has only penetrated about 5% to 6% of its theoretically addressable market, with double-digit penetration in the U.S. and some select European markets.

To its credit, the current management team of Cyberonics has guided the company in line with these market realities and has built a model focused around a strong replacement cycle (approximately 40% of revenue) and incremental value-added product development. On the replacement side, implants last around five years on average, with 3-4% annual price increases (and sometimes higher when there are meaningful advances).

In terms of new products, Aspire SR could be a very significant new product. It's going to be a couple of years before this product makes it to market in the U.S., but the device was designed with a "seizure response" feature that monitors the patient's heart rate and provides increased stimulation when it appears that a seizure is coming. The E-36 study has produced some encouraging data and good results in the E-37 U.S. study could not only drive FDA approval, but perhaps increased commercial/market acceptance as well.

New Markets Have Long Been Promising… And Difficult

For over 15 years now, Cyberonics has tried to develop additional market opportunities for VNS therapy. Drug-resistant depression was one of the earliest targets and although initial studies were not positive for the device, subsequent studies have shown a meaningful benefit for many patients who have not responded to drugs.

While the FDA has approved VNS therapy for depression patients who have not responded to at least four drugs, the company has been stymied thus far in securing adequate reimbursement. Cyberonics continues to work on this, and is trying to get the CMS to reconsider its coverage for a subset of seriously ill patients. This subset includes about 70,000 patients in the U.S. alone and could represent $1.5 billion in potential revenue but getting payers to go along has been an uphill battle for some time.

Among other potential indications, Cyberonics is also pursuing the possibility of VNS therapy as a treatment for congestive heart failure. Pilot study data are due later this year, but it's hard not to be skeptical. Device-based interventions for CHF have a pretty poor history, as only a limited subset of patients have responded well to the cardiac resynchronization therapy approach pushed by Medtronic (MDT), St. Jude Medical (STJ), and Boston Scientific (BSX).

This pilot study is targeting patients with Class II/III heart failure, which overlaps with the CRT market addressed by Medtronic, St. Jude Medical, and Boston Scientific. These companies have all been working on getting more usage in Class II patients (the higher the class, the worse the condition), as only about 20% to 30% of Class III patients are good candidates (and about 30% of patients don't respond to CRT therapy).

BioControl Medical has already shown that vagus nerve stimulation may be a productive approach - a small two-stage study saw patients getting VNS migrate from a distribution of 47% Class II, 47% Class III and 6% Class IV to 34% Class I / 48% Class II / 17% Class III and 43%/43%/13% at 6-month and 12-month follow up, respectively. There were also significant improvements in exercise tolerance and quality of life.

Unlike CRT from Medtronic/Boston Scientific/St. Jude, the approach being explored by Cyberonics and BioControl involves restoring or augmenting parasympathetic function and works on the autonomic nervous system instead of stimulating/shocking an already damaged heart. This opportunity could address over 1 million patients (and perhaps 2 million or more) and at an ASP of $15,000 or so, the numbers get very large very quickly ($15 billion-plus at 100% penetration). Were this approach to show solid clinical efficacy, I would not be surprised to see Cyberonics partner with Medtronic, St. Jude, or Boston Scientific or receive a buyout offer.

A Little Competition May Not Be A Bad Thing

Although many key patents on VNS therapy expired in 2011, Cyberonics has seen little direct competition. Neurotech and Cerebral Rx have CE-marked VNS approaches, while Medtronic and St. Jude have been more interested in pursuing deep brain stimulation for epilepsy and depression. NeuroPace has advanced its RNS System (Responsive Neurostimulator System) and it has shown better seizure reduction at one-month and one-year periods, but it requires a cranial implant (brain surgery) and more complicated programming.

Odd as it may sound, getting a major player in neuromodulation like Medtronic, St. Jude, or Boston Scientific to get involved in vagus nerve stimulation wouldn't necessarily be the worst thing for Cyberonics. Market/doctor acceptance is still a major issue and the marketing muscle of one of those companies could bring some much-needed attention to the therapy. Given that these companies have all pushed other therapies (in different therapeutic areas) in the past with even weaker efficacy profiles, I do find the lack of interest in vagus nerve stimulation to be interesting.

The Bottom Line

I am not modeling significant uptake in depression at this time, leading me to project roughly 9% long-term annual revenue growth on the strength of additional market penetration in epilepsy and ongoing replacement sales. That supports an intrinsic fair value in the $50s today, with an EV/revenue approach (using a 6x multiple that is consistent with growth med-tech) suggesting a mid-$60s target price. Were Cyberonics to achieve 5% share in depression in the U.S. (of that 70K patient subset), the DCF-based fair value would move into the $60s, but it would take more than 10% share to get to the current average sell-side target price of almost $76.

I realize that growth med-tech stocks trade on revenue growth and revenue multiples and rarely on margins or FCF. With that, an unexpected improvement in market penetration or positive news on reimbursement in depression would certainly be good for the stock. I'm not fond of owning stocks trading above what I believe to be intrinsic fair value, though, so I don't anticipate adding these shares to my own portfolio in  the near term.

http://seekingalpha.com/article/1996061-depression-likely-the-biggest-incremental-driver-for-cyberonics.

Cyberonics (CYBX) AspireSR Generator Receives CE Mark

 

Cyberonics (CYBX) AspireSR Generator Receives CE Mark

February 20, 2014 7:16 AM EST

Cyberonics (Nasdaq: CYBX) announced the CE Mark (Conformité Européenne) approval in Europe for the AspireSR generator, the novel sixth-generation VNS Therapy generator.

The AspireSR generator provides the well-established benefits of VNS Therapy, coupled with a new feature – Automatic Stimulation in response to detection of a seizure.

Proprietary technology enables the AspireSR generator to analyze relative heart rate changes to detect and respond to seizures. This technology is based on a growing body of evidence that seizures are often accompanied by an increase in heart rate (ictal tachycardia). With the Automatic Stimulation feature, the AspireSR generator better aligns stimulation with the clinical onset of a seizure.


Currently, patients experiencing VNS Therapy can use a hand-held magnet to activate stimulation manually when they anticipate the onset of a seizure. This on-demand stimulation has been shown to stop or shorten a seizure, reduce seizure severity, and improve or shorten the postictal (post-seizure) recovery period. The Automatic Stimulation feature of the AspireSR generator may benefit patients who experience seizures accompanied by ictal tachycardia and are unable to perform on-demand stimulation with the hand-held magnet, do not have a magnet available when needed, or experience a seizure while sleeping.


Results of the E-36 clinical study, which evaluated the performance and safety of the AspireSR generator, were presented at the American Epilepsy Society meeting in December 2013. The study met its primary performance endpoint, and the safety profile for the AspireSR generator is consistent with currently available VNS Therapy systems.
"A significant number of people living with refractory epilepsy experience heart rate changes during their seizures," stated Prof. Dr. med. Christian E. Elger, FRCP, Head of the Department of Epileptology at the University Hospital of Bonn, Germany. "AspireSR builds upon the VNS Therapy platform by providing a unique, innovative possible therapeutic option for these patients by automatically detecting and responding to seizures upon heart rate increase."


"European approval of the AspireSR generator represents an important milestone in Cyberonics' ongoing commitment to provide technologically-advanced, device-based solutions for people with epilepsy," said Dan Moore, President and CEO of Cyberonics. "This new generator will be particularly helpful to VNS Therapy patients who are unable to use magnet-activated stimulation consistently. We believe the Automatic Stimulation feature will continue to advance VNS Therapy as a foundational therapy for people with refractory epilepsy."

 

http://www.streetinsider.com/Corporate+News/Cyberonics+%28CYBX%29+AspireSR+Generator+Receives+CE+Mark/9194482.html

Tuesday, May 28, 2013

Epilepsy Device Pioneer Cyberonics Still Evolving After 25 Years

Epilepsy Device Pioneer Cyberonics Still Evolving After 25 Years
Bernadette Tansey    5/28/13      Follow@tanseyverse 
Long before the explosion in the personal electronics field brought us iPods and iPhones, biomedical engineers were making devices to interact with the personal electrical “circuitry” that regulates the human heart and other organs. Back in 1958, Minneapolis, MN-based Medtronic produced its first battery-operated, portable pacemaker to stimulate nerves in the malfunctioning heart. It looked something like an old Sony Walkman cassette player strapped around the waist.

In 1987, Texas entrepreneurs founded a company to try a nerve stimulation device as a treatment for epilepsy. The units now marketed by that company, Houston, TX-based Cyberonics (NASDAQ: CYBX) still have the same basic design: a surgeon implants a unit called a generator under the skin of the upper chest, then threads an electrode from the generator up through the side of the neck. The thin wire, wrapped around the vagus nerve, delivers mild electrical pulses designed to head off seizures. The device is supposed to reduce the frequency of epileptic seizures.

The size of Cyberonics’ generator unit, however, has changed since the first model was approved by the FDA in 1997.

Cyberonics CEO Daniel Moore keeps one of the company’s first models on his desk.

“People say it was the size of a hockey puck,” Moore says. “It wasn’t quite that big.”

Recent improvements in battery technology have allowed Cyberonics to shrink the devices it sells today to the size of a watch face, Moore says. And, like pacemaker manufacturers, Cyberonics has been working to make its Vagus Nerve Stimulation (VNS) Therapy system more responsive to individual needs. The company is also tapping the interactive potential of the units as collectors of data for patients and their physicians.

The latest round of technical improvements come as Cyberonics has largely recovered from a big setback a few years ago. The company hit a low point in May 2007, when Medicare said there wasn’t enough evidence to support use of the Cyberonics device for patients with treatment-resistant depression. The company saw its sales drop 8 percent the following year, before it regained its momentum in 2009, with renewed focus on epilepsy. Sales climbed about 15 percent last year to $218.5 million.

The Texas firm faced no clear competitors when it began developing its implantable units for epilepsy in the 1980s. It was a different situation than the one faced by Medtronic in 1958. Back then, the Minneapolis company’s portable, external cardiac pacemaker helped heat up a race to market the first pacemaker that could be implanted in the body—which Medtronic (NYSE: MDT) did in 1960.
The first task for Cyberonics was to persuade doctors and the FDA that its implantable VNS device had a place in the epilepsy treatment spectrum.

In the United States, nearly 3 million people have epilepsy, according to the Epilepsy Foundation, a non-profit patient support group. About half of those diagnosed can get seizure relief from the first drug prescribed, Moore says. If not, doctors try one medicine after another, alone or in combinations, to find a regimen that works. For two-thirds of patients, drugs will curb the disorder, Moore says. But that leaves a substantial population whose seizures aren’t fully controlled. Cyberonics estimates that about 400,000 people in the United States are candidates for its product.

The company’s VNS devices usually deliver a 30-second electrical pulse to the vagus nerve about every five minutes, but the timing and strength of the electrical burst is programmed by a doctor using a handheld computer. The National Institute of Neurological Disorders and Stroke estimates that the therapy reduces the frequency of seizures by an average of 20 to 40 percent. Patients with the device keep taking anti-epilepsy medication, but they may be able to reduce the dose.

In 1997, Cyberonics’ device was approved in the United States for people over the age of 12 who suffer from partial seizures that resist drug treatment. Partial seizures arise in a specific area of the brain, rather than across the whole brain.

The epilepsy device was generating more than $100 million in annual revenues by 2007. But that was a rocky year. Cyberonics had spent millions on R&D to prove that the VNS system could also be effective in depression that doesn’t respond to existing drugs, a potentially larger market than epilepsy. The FDA had approved the device in 2005 for people whose depression was resistant to drug therapy. But Medicare administrators decided in 2007 not to reimburse for the device after reviewing evidence on its benefits and patients’ needs.

At that point, Moore says, the company was losing more than $50 million a year and held $132.5 million in debt. Dissident Cyberonics shareholders, backed by activist investor Carl Icahn, pressured the company to replace three board members. Cyberonics then brought in Moore, a veteran executive from Boston Scientific, as its new CEO.

Moore refocused the company on expanding its epilepsy franchise in the United States and internationally. About 19 percent of sales now come from 70 countries worldwide. Cyberonics, with 570 employees, has been profitable since 2009. The company has paid off the $132.5 million in obligations that burdened it in 2007.

“That debt is gone,” Moore says.

Cyberonics has continued to run clinical trials in depression, and recently re-submitted its case for reimbursement to the Centers for Medicare & Medicaid Services (CMS).

Epilepsy, therefore, still accounts for most sales of the VNS device. Of the approximately 125,000 people newly diagnosed with epilepsy in the United States, about 15,000 to 24,000 are potential candidates for the Cyberonics product, Moore says. That gives the company room for expansion—it treats about 4,000 new U.S. patients a year.

Meanwhile, Cyberonics has been working on successive generations of its device to adapt the technology to individual patients’ needs. Although the VNS device can reduce seizures to some extent through a scheduled series of electrical bursts, an attack can begin between these intervals. Cyberonics provides a supplementary handheld magnet that patients can sweep over the implanted generator in their chests to initiate a pulse when they feel a seizure coming on.

Batteries in the devices are now smaller, and some units can turn themselves off between pulses to prolong battery life. The battery’s life span is important because the generator must be replaced by another surgery when the battery runs down. Batteries now last about three to eight years, depending on the pattern of use for the individual patient, Moore says.

The sixth generation VNS device, AspireSR, is now in development. It is designed to monitor the patient’s heart rate for signs that a seizure may be beginning, and fire off a pulse in response.

Cyberonics is also working on a number of new features, including rechargeable batteries and a device called ProGuardian—an external heart rate monitor to alert patients or their caregivers of impending seizures. Another product in development called Relay would wirelessly transmit data about the patient to a doctor’s computer.

But meanwhile, competitors are also innovating. Cyberonics’ main competition comes from existing anti-epilepsy drugs and new medicines in development, according to its annual report. But rivals are also emerging among device makers. Seattle-based NeuroVista, for one, is developing a device that can provide advance warning to patients about an oncoming epileptic seizure, so they can find a safe place to lay down.

Cyberonics’ forerunner in neuromodulation, the medical device giant Medtronic, has tested its own device for epilepsy. Medtronic has been expanding the market for its Deep Brain Stimulation (DBS) Therapy, which is now FDA-approved for the treatment of Parkinson’s disease, essential tremor and other conditions. In 2010, Medtronic received clearance from regulators to sell the device in Europe, to treat adults with partial-onset seizures that drugs can’t fully control. An FDA panel recommended approval, with some conditions. But the U.S. regulatory agency asked Medtronic to conduct another pre-market study before giving it the green light to sell the device here. Medtronic is in discussions with the FDA on other routes to make the therapy available in the U.S.

Two other companies have gotten European regulatory clearance for their own vagus nerve stimulation devices: CerebralRx of Israel, and Neurotech , which was acquired in November by Sorin Group of Milan, Italy. In February, an FDA panel recommended approval of an anti-epilepsy device made by Mountain View, CA-based NeuroPace. Its RNS System consists of electrodes in the brain that detect abnormal electrical activity and respond with electrical impulses.

Three other companies are working on various non-invasive neuromodulation technologies to treat epilepsy, depression, or both—without implanting a device in the body. Two are US-based: NeuroSigma of Los Angeles, CA, and Neuronetics of Malvern, PA.

Cyberonics has an alliance with the third: CerboMed, a private company based in Erlangen, Germany. Its NEMOS t-VNS system, which includes an earplug-like device, is designed to stimulate a branch of the vagus nerve in the outer ear by sending a pulse through the skin. CerboMed’s device has received clearance for marketing in Europe for patients with epilepsy, depression, and pain. In September, Cyberonics said it had made an initial investment of about $2.6 million in Cerbomed and gained an exclusive option to market the NEMOS device worldwide as an epilepsy treatment.

That said, Cyberonics’ products still dominate the market in devices for epilepsy.

In December, as Cyberonics celebrated its 25th anniversary as a company, it announced that a total of 100,000 of its VNS devices had been implanted.

Moore says the company’s turnaround since 2007 owed much to the progress the company had already made.

“It was possible because there were so many good people here, and a good product,” Moore says.

Bernadette Tansey is a freelance journalist based in Berkeley, CA. Follow @tanseyverse
 

Tuesday, January 3, 2012

Cyberonics Announces FDA Approval of Re-Designed AspireHC(TM) Generator for VNS Therapy


Cyberonics Announces FDA Approval of Re-Designed AspireHC(TM) Generator for VNS Therapy

HOUSTON, Jan. 3, 2012 /PRNewswire/ -- Cyberonics, Inc. (NASDAQ: CYBX) today announced that the United States Food and Drug Administration (FDA) has approved its re-designed AspireHC (High Capacity) generator, which was the subject of a voluntary product withdrawal in August 2011.

"We are pleased that the FDA was able to complete its review in approximately 60 days, enabling us to resume our limited commercial release of the AspireHC generator in the United States," said Dan Moore, Cyberonics' President and Chief Executive Officer.  "With the CE Mark approval announced in December and a recently obtained Canadian approval, we will also resume the limited commercial release in Europe and initiate a limited commercial release in Canada.  The AspireHC generator addresses a need among some patients for a device with a higher capacity battery and also provides a platform for the AspireSR™ seizure response generator, which is the subject of our E-36 clinical trial in Europe.  We anticipate submission of the re-designed AspireSR generator for ethics committee and competent authority approvals for the E-36 clinical trial no later than the end of our fiscal year in April 2012."

About Cyberonics, Inc. and the VNS Therapy® System
Cyberonics, Inc. is a medical technology company with core expertise in neuromodulation.  The company developed and markets the VNS Therapy System, which is FDA-approved for the treatment of refractory epilepsy and treatment-resistant depression.  The VNS Therapy System uses a surgically implanted medical device that delivers pulsed electrical signals to the vagus nerve.  Cyberonics markets the VNS Therapy System in selected markets worldwide.
Additional information on Cyberonics and the VNS Therapy System is available at www.cyberonics.com.

Safe harbor statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.  These statements can be identified by the use of forward-looking terminology, including "may," "believe," "will," "expect," "anticipate," "estimate," "plan," "intend," "forecast," or other similar words.  Statements contained in this press release are based on information presently available to us and assumptions that we believe to be reasonable.  We are not assuming any duty to update this information if those facts change or if we no longer believe the assumptions to be reasonable. Investors are cautioned that all such statements involve risks and uncertainties, including without limitation, statements concerning making filings to support the resumption of the AspireSR™ generator E-36 European clinical trial by the end of the fiscal year and resumption of the E-36 clinical trial.  Our actual results may differ materially.  Important factors that may cause actual results to differ include, but are not limited to: continued market acceptance of VNS Therapy™ and sales of our product; the development and satisfactory completion of clinical trials and/or market test and/or regulatory approval of VNS Therapy™ for the treatment of other indications; satisfactory completion of post-market studies required by the U.S. Food and Drug Administration as a condition of approval for the treatment-resistant depression indication; adverse changes in coverage or reimbursement amounts by third-parties; intellectual property protection and potential infringement claims; maintaining compliance with government regulations and obtaining necessary government approvals for new indications; product liability claims and potential litigation; reliance on single suppliers and manufacturers for certain components; the accuracy of management's estimates of future expenses and sales; the potential identification of material weaknesses in our internal controls over financial reporting; and other risks detailed from time to time in our filings with the Securities and Exchange Commission (SEC).  For a detailed discussion of these and other cautionary statements, please refer to our most recent filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 29, 2011, and our Quarterly Report on Form 10-Q for the fiscal quarters ended July 29, 2011 and October 28, 2011.

CONTACT INFORMATION:
Greg Browne, CFO
Cyberonics, Inc.
100 Cyberonics Blvd.
Houston, TX 77058
Main:  (281) 228-7262
Fax:  (281) 218-9332
ir@cyberonics.com
SOURCE Cyberonics, Inc.

Monday, August 15, 2011

CYBERONICS ANNOUNCES HOLD ON SHIPMENT AND RETRIEVAL OF INVENTORY OF AspireHC™ AND AspireSR™ GENERATORS


For Release Monday, August 15, 2011; 8:00 AM ET

CYBERONICS ANNOUNCES HOLD ON SHIPMENT AND RETRIEVAL OF INVENTORY OF AspireHC™ AND AspireSR™ GENERATORS

COMPANY AFFIRMS FINANCIAL GUIDANCE FOR FISCAL 2012

HOUSTON, Texas August 15, 2011 -- Cyberonics, Inc. (NASDAQ:CYBX), a global leader in devices for epilepsy management, announced today that it has voluntarily stopped shipment and is retrieving field inventory of its Aspire platform generators, Models 105 and 106.  The company does not believe that the generators pose a health risk to patients, but initiated this action when it discovered that stimulation output current delivered to patients can be less than the output current programmed by a physician.  Instructions will be provided to physicians regarding management of the approximately 118 patients worldwide who have been implanted with an AspireHC or AspireSR generator.  Cyberonics has also suspended enrollment in its E-36 clinical trial pending resolution of this hardware-related design issue.

“Patient safety is our first priority.  We are working expeditiously to resolve this problem.  Our product development team has identified what we believe to be the cause of the problem, as well as several potential hardware solutions,” said Dan Moore, President and Chief Executive Officer.  “Our goal is to implement and validate a solution and submit for regulatory approvals by no later than the end of the fiscal year.”

The company, which completed the first quarter of fiscal 2012 on July 29, 2011 and will report financial results on August 25, 2011, does not currently anticipate a change to guidance for fiscal year 2012 as a result of this action. The previously provided guidance remains at $212 million to $215 million for net sales, and $54 million to $57 million for income from operations.  Sales for the AspireHC (Model 105) generator comprised approximately 9% of worldwide revenue in the recently completed first quarter, and the company believes that the availability of alternate models provides physicians and patients with appropriate additional options for the treatment of refractory epilepsy.

About Cyberonics, Inc. and the VNS Therapy® System

Cyberonics, Inc. is a medical technology company with core expertise in neuromodulation.  The company developed and markets the VNS Therapy System, which is FDA-approved for the treatment of refractory epilepsy and treatment-resistant depression.  The VNS Therapy System uses a surgically implanted medical device that delivers electrical pulsed signals to the vagus nerve.  Cyberonics markets the VNS Therapy System in selected markets worldwide.

Additional information on Cyberonics and the VNS Therapy System is available at www.cyberonics.com.