Inspiration Healthcare signs exclusive agreement with US university

The device, which has been used in early stage research studies, is expected to be developed over the next 12 months. It could be submitted for CE marking and FDA approval during the course of next year and will eventually join Inspiration's other products designed to improve patients' outcomes in the field of neonatal intensive care.

The cost of the agreement has been satisfied from existing resources dedicated to research and development.

Chief executive Neil Campbell said: "We are extremely proud to have signed this agreement with a prestigious university in the United States of America and to have secured the rights to this medical technology that will put us at the forefront of the very latest 'know how' in the neonatal respiratory care. To know we can work with such a prestigious institution shows that our values are understood around the world as we strive to improve the outcomes of sick and premature babies.

"There is a lot of hard work ahead to turn this idea into a licenced medical device but it is very much in keeping of our corporate philosophy of working with the world's leading medical research teams and securing the rights to the devices they are developing. Although the device will not be available for some time, we are excited about the opportunities it will give us to remain leaders in this specialised field."

At 1005 GMT, the shares were up 2.8% to 69.37p.