What happened

Shares of Kopin (NASDAQ:KOPN) have skyrocketed by as much as 23% today, after the company announced a new development agreement with a major medical technology company. As of 11:30 a.m. EST, the stock had pulled back but was still up 10%.

So what

Kopin, which specializes in microdisplay technology, is partnering with HMDmd, a small start-up that is making wearable display products, to develop a head-worn display system that surgeons can use to access high-resolution real-time information while performing surgeries. Surgeons will also be able to see diagnostic information and patient data without having to use their hands or diverting their attention to a traditional monitor.

Green stock chart going up

Image source: Getty Images.

"We are excited to develop this customized high-performance display system for surgical applications," Kopin CEO John Fan said in a statement. "We believe the combination of our expertise in display system design with HMDmd's deep knowledge of the specific needs of surgeons is crucial for developing a display system optimized for surgeons."

Now what

The news comes after Kopin announced two other development agreements last month. The company notes that it also holds warrants for a minority stake in HMDmd. Kopin has licensed its wearable display technology to the smaller company to develop the product, and the companies did not specify who the customer was.

HMDmd CEO John Lyon added that his company has already demonstrated a concept version of the product to surgeons and potential distribution partners. Early feedback has been "very positive," according to Lyon.

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