A US-based medical distributor, LeMaitre Vascular has invested $3.2 million in an Australia medical device manufacturer to purchase the distribution rights of CardioCel and VascuCel products.
Manufactured by Brisbane-based Admedus, the products are patches used to treat cardiovascular conditions. The CardioCel has been seen to achieve 10 years without calcification or degradation when in a patient
“This transaction is a transformational milestone for Admedus, realising the value from its CardioCel and VascuCel products. Importantly, the deal firmly positions the Company for its next growth phase anchored by its ground-breaking TAVR programme,” said Admedus CEO, Wayne Paterson.
The company expects that with this investment, LeMaitre will grow the application of these products.
“We are pleased to transition CardioCel and VascuCel to LeMaitre, a bonafide leader in the cardiovascular space. LeMaitre’s sales infrastructure and scale will propel the clinical credibility and brand profile Admedus has already established for CardioCel(R) and VascuCel(R),” said Paterson.
The contract also specifies a three-year manufacturing contract, with 20 per cent of the margin above cost retained by Admedus. Admedus will continue to manufacture CardioCel and VascuCel at its site in Malaga, Western Australia for US distribution.
Admedus will also retain the intellectual property of the underlying ADAPT technology platform and process. This platform has led to the development of the TAVR device and 3D aortic valve.
“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(R) platform,” said Paterson.
With this investment, Admedus will look to its first, in human study of a single-piece 3D aortic valve in 2020.
“This is what management set-out to achieve for shareholders two years ago. The partnership strategy was possible only after we built a credible product profile over the past two years,” said Paterson.