Admedus sells cardio business for $36 million

Cardiovascular device manufacturer Admedus (ASX: AHZ) has sold the distribution rights to its CardioCel and VascuCel product range for $A36.2 million to LeMaitre Vascular Inc.

The company, whose ADAPT engineering process produces implantable tissue bio-scaffolds for a range of cardiovascular and vascular applications, will receive $22.8 million in an upfront payment.

the remainder will flow in installments for delivery of stock and as an earn out should sales milestones be achieved in future.

The Brisbane company’s VascuCel is a blood vessel scaffold used for cardiac repairs and reconstructions in the United States.

CardioCel scaffold is used to repair congenital heart deformities and valves and is widely available around the world, including in Australia.

Admedus will retain the intellectual property portfolio for the underlying ADAPT technology, and continue to manufacture VascuCel and CardioCel at its Perth facility for at least three years.

Admedus CEO Wayne Paterson characterised the sale as inaugurating a partnership between Admedus and one of the world’s leading cardiovascular space.

Paterson said: “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.”

Admedus will concentrate on developing a single-piece 3D aortic valve and its transcatheter aortic valve replacement (TAVR) devices.

“Paterson said: “The transaction provides a significant injection of non-dilutive capital and streamlines operations with cost reductions from a reduced headcount and operating expenses.

“Admedus is now configured to focus on product innovation led by the TAVR programme and other large market opportunities based on its scientifically and commercially validated ADAPT platform.

Picture: Admedus

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