- Admedus was up more than 21 per cent today after selling its distribution rights for two products to a U.S. based business
- Admedus will sell its products to the business for more than $36 million
- However, Admedus will continue making the products in Western Australia
- Shares are up 16.7 per cent, trading for 7 cents apiece
Admedus was up more than 21 per cent after it sold its distribution rights for two products to a U.S. based business.
This deal sees Admedus sell its CardioCel and VascuCel patch business to LeMaitre Vascular Inc. for up to $36.2 million in cash payments.
Under the terms of this agreement Admedus will receive $22.8 million upfront and be followed by deferred payments of $1 million at 12 and 36 months.
Admedus also has the opportunity to receive up to $11.4 million in earn-out payments which includes $3 million if it obtains regulatory approvals under the European Medical Devices Directorate Regulation.
Admedus will hold onto its manufacturing rights for up to three years and will continue producing both CardioCel and VascuCel in Western Australia.
It will also keep sole-control on all intellectual property for the underlying ADAPT technology platform and process, which includes its breakthrough TAVR device and single-piece aortic valve.
“We are pleased to transition CardioCel and VascuCel to LeMaitre, a bonafide leader in the cardiovascular space,” CEO Wayne Paterson said.
“LeMaitre’s sales infrastructure and scale will propel the clinical credibility and brand profile Admedus has already established for CardioCel and VascuCel,” he added.
CardioCel is a bio-scaffold material that is used to repair congenital heart deformities and more complex heart defects. It can also be used to reconstruct dysfunctional heart valves and valve leaflets.
The material is durable and flexible with the elasticity making it easier to handle and use. Due to its strength its suitable for use in pressured environments.
Long-term clinical studies of CardioCel have shown minimal to no calcification (hardening of tissue and other materials) nine years after the implant was inserted.
It also showed strong ingrowth of normal heart tissue around the implant and blood flow both through and around the implant.
VascuCel is indicated for use as a patch in vessel repair, peripheral vascular reconstruction and suture line buttressing (stitches support).
It is bio-engineered using Admedus’ ADAPT technology and has been used successfully in cardiac repairs and reconstruction for years.
“This transaction is a transformational milestone for Admedus, realising the value from its CardioCel and VascuCel products,” Wayne said.
“Importantly, the deal firmly positions the Company for its next growth phase anchored by its ground-breaking TAVR program,” he concluded.
Admedus shares are up 16.7 per cent, trading for 7 cents apiece at 1:51 pm AEDT.