Lombard Medical technologies, a medical device company focused on solutions for the $1 billion abdominal aortic aneurysm (AAA) repair market, announces that it has signed an agreement for the distribution of Aorfix in Japan, a new geographic market for Lombard Medical.
Japan is a major market for AAA stent grafts, estimated to be worth $100 million a year. Lombard Medical’s commercial partner has the sales infrastructure to maximise the potential of Aorfix in Japan. The identity of the commercial partner has not been disclosed at this stage for reasons of commercial confidentiality.
Lombard Medical’s Japanese partner will apply for marketing approval of Aorfix in Japan and once this is obtained, the commercial partner and Lombard Medical have agreed to a mutually exclusive contract to sell Aorfix in Japan.
In order to assist Lombard Medical’s funding of its various development projects, including its thoracic stent graft whose development is currently on hold, the Japanese partner has agreed to provide the company with a loan facility of up to $5 million. The first part of the loan, for a total of $2.5 million, will be available to Lombard Medical at its option once FDA approval of Aorfix has been received. This loan may be increased to up to a total of $5 million subject to certain conditions requiring the approval of both parties. The loans are repayable at the end of the term of the agreement, but may be forgiven if the parties agree to a second distribution term.
Commenting on this agreement, Lombard Medical Chief Executive John Rush said: “Japan represents the third largest market worldwide for endovascular AAA procedures and is one of the fastest growing. We are pleased to have an opportunity to launch Aorfix into this important market with such an excellent partner. ”