Change is in the air for Admedus. The Brisbane, Australia-based company is selling off its CardioCel and VascuCel businesses to LeMaitre Vascular. The deal would give Admedus the space to focus on its transcatheter aortic valve replacement products.
Under the agreement terms, Admedus receives $A22.8 million upfront followed by deferred payments of $A1 million each at 12 months and at 36 months. Additionally, the company could receive up to $A11.4 million in earn-out payments.
Admedus said it retains manufacturing rights for up to three years and will continue manufacturing CardioCel and VascuCel at its Malaga facility in Western Australia for LeMaitre. The manufacturing agreement ensures Admedus a 20% margin over cost.
Surgeons use CardioCel products to treat congenital heart defects, vessel and cardiovascular repairs, and peripheral vascular reconstruction. VascuCel is used as a patch in great vessel repair, peripheral vascular reconstruction and suture line buttressing.
The firm is now configured to focus on product innovation led by the TAVR program and other large market opportunities based on its scientifically and commercially validated ADAPT platform.
"Admedus plans its first-in-human studies for its single-piece 3D aortic valve in 2020,” Admedus CEO, Wayne Paterson, said in a release. “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 TAVR devices to be breakthrough for patients.”