Endologix announced today that it has signed a definitive agreement to acquire Nellix, a medical company that has developed a revolutionary abdominal aortic aneurysm endograft.
Under the terms of the agreement, Endologix will acquire Nellix for US$15 million in stock at closing, plus additional milestone-based, stock payments of up to US$39 million. The agreement also includes a commitment for a US$15 million equity investment in Endologix from Essex Woodlands Health Ventures, the majority shareholder of Nellix.
Endologix anticipates that the closing of the transactions will occur in the fourth quarter of 2010, subject to approval of the stockholders of Endologix and certain other customary closing conditions.
Nellix has developed a highly differentiated technology platform that completely seals and fills an aortic aneurysm sac, preventing device migration and potentially improving clinical outcomes. This allows the product to treat a wide range of aneurysm anatomies, including those that are outside of the indications for existing EVAR devices. These include patients with aortic neck lengths of 5mm or less, widths as wide as 34mm, and patients with iliac aneurysm diameters greater than 23mm. Initial clinical results from patients with up to two years follow-up have shown 100% implant success; 100% freedom from aneurysm-related mortality; no aneurysm ruptures; no surgical conversions; and no stent graft migrations.
John McDermott, Endologix president and chief executive officer, said, “We believe Nellix is the most revolutionary EVAR technology in the world and will help position Endologix as the innovation leader in aortic aneurysm treatment. Nellix has developed a new technology that will allow more physicians to treat more patients than with any of the existing devices, potentially expanding the global market for EVAR. The device also has exceptional clinical results and feedback from physicians is very positive, particularly as it relates to ease of use, effectiveness and versatility to treat both simple and complex aortic anatomies.”
McDermott continued, “In the near-term, we will dedicate resources to build a direct sales force in Europe, which will provide a channel to launch the Nellix system in Europe in 2012 and provide a significant growth opportunity for Endologix’s existing and future products.”
Bob Mitchell, president and chief executive officer of Nellix said, “Endologix is the ideal partner to maximise Nellix’s potential and drive adoption of this revolutionary device. The Nellix technology has been developed in collaboration with thought-leading physicians around the world and is the only abdominal aortic aneurysm device that completely seals the aneurysm sac. Early clinical data suggest that the Nellix implant has the potential to dramatically reduce endoleaks, secondary interventions and long-term patient follow-up costs. I look forward to joining Endologix and working closely with the management team as we build out the sales force in both the United States and Europe, and continue developing the new product pipeline.”
