LeMaitre Vascular announced on 17 November 2010 that it has acquired the Lifespan Vascular Graft manufacturing business from Angiotech Pharmaceuticals. Lifespan is a vascular prosthesis used in the repair or replacement of diseased arteries and in the creation of vascular access sites for dialysis. The company paid Angiotech a net purchase price of US$2.8 million in exchange for the business, which includes a factory located in Laguna Hills, California, USA.
Lifespan was introduced in the mid-1990s and is currently sold in the United States, the European Union, Japan, Canada, and several other markets through third-party distributors, primarily Edwards Lifesciences. The net purchase price is 1.8 times Angiotech’s sales to distributors during its four most recently completed fiscal quarters.
In a related transaction, LeMaitre Vascular and Edwards have agreed to a wind-down of Edwards’ distribution of Lifespan, which is scheduled to conclude on 30 November 2010. The company will pay Edwards US$0.75 million in exchange for orderly market transitions in Europe (where Lifespan sales are strongest) and Japan, and will pay approximately US$0.5 million for the majority of Edwards’ inventory. The company is also receiving the Lifespan trademark from Edwards. The company intends to begin selling Lifespan through its own worldwide sales force on 1 December 2010.
“ePTFE vascular grafts are an essential vascular surgery implant and are complementary to our growing portfolio of vascular devices and implants,” said David B Roberts, president of LeMaitre Vascular.
The company does not expect to record material Lifespan revenues in Q4 2010 and expects the transaction will reduce Q4 operating income by approximately US$0.3 million. The company expects Lifespan revenues of approximately US$1.7 million in 2011. The transaction is expected to reduce operating income by approximately US$0.7 million in 2011 and be accretive thereafter. These amounts exclude the impact of any future restructuring activities.