Admedus has sold the distribution rights to its CardioCel and VascuCel product range for $A36.2 million to US-based LeMaitre Vascular. A press release from Admedus announces that it will focus on advancing its transcatheter aortic valve implantation (TAVI) programme and other potential products.
LeMaitre is a global provider of implants and devices for the treatment of peripheral vascular diseases. CardioCel and VascuCel are regenerative bioscaffold platform technologies used for cardiovascular procedures and repairs. Surgeons use CardioCel products to treat congenital heart defects, vessel and cardiovascular repairs, and peripheral vascular reconstruction. Admedus points out that CardioCel product range is the only one to have achieved 10 years without calcification or degradation in man, a significant benefit to patients otherwise forced to undergo recurrent operations. VascuCel is used as a patch in great vessel repair, peripheral vascular reconstruction, and suture line buttressing.
The deal consists of an $A22.8 million upfront payment, plus two instalments of $A1m each after 12 and 36 months. Subject to the achievement of certain milestones, there will also be earnout payments of up to $A11.4 million, for a total of $A36.2 million (at the current $US0.67/$A1 rate).
The statement from Admedus also outlines that it retains manufacturing rights for up to three years and will continue manufacturing CardioCel and VascuCel at its facility in Western Australia for LeMaitre. The manufacturing agreement ensures Admedus a 20% margin over cost. Admedus also retains sole-control on all intellectual property for the underlying ADAPT technology platform/process, including its breakthrough TAVI device and single-piece 3D aortic valve.
Wayne Paterson, Admedus’ chief executive officer, says in the press release: “This transaction is a transformational milestone for Admedus, realising the value from its CardioCel and VascuCel products. Importantly, the deal firmly positions the Company for its next growth phase anchored by its groundbreaking TAVI programme. This is what management set-out to achieve for shareholders two years ago. The partnership strategy was possible only after we built a credible product profile over the past two years. LeMaitre’s sales infrastructure and scale will propel the clinical credibility and brand profile Admedus has already established for CardioCel and VascuCel. We anticipate LeMaitre’s channel will successfully expand the adoption of these products,”
He adds: “Admedus plans its first-in-human studies for its single-piece 3D aortic valve in 2020. Based on Admedus’ current laboratory and animal study findings—combined with the highly differentiated anti-calcification properties of all products generated using the ADAPT technology—there is potential for single-piece 3D aortic valve and TAVI devices to be breakthrough for patients.”