Lombard Medical Technologies PLC retains distribution rights for Aorfix™, AAA and Thoracic Stent Grafts
London, UK, 25 August 2006 - Lombard Medical Technologies PLC (“Lombard”) announces today that it has decided for the immediate future to continue with its own distribution of its Aorfix™ AAA stent graft for the treatment of abdominal aortic aneurysms in territories outside the USA.
Following discussions with Boston Scientific Limited (“Boston”) it was agreed that it was not in the interests of either party at this time for Boston to exercise its existing option to act as exclusive distributor of the Company’s abdominal and thoracic stent grafts outside the USA. This option is due to lapse on 30th August 2006.
Alistair Taylor, Executive Chairman of Lombard Medical, said:
“We are making good progress with sales of Aorfix™ both directly in the UK and throughout Europe with our growing network of distributors. We have recently signed up distributors in Italy, Poland, Slovenia, Spain and Turkey, which will further widen our geographic presence. By retaining non US distribution we will achieve increased margins in the medium to long term from sales of Aorfix™. The positive 12 month clinical data and the launch of a second generation version of Aorfix™ has also added impetus to our sales effort.
“We agreed with Boston not to further extend the exclusive distribution option since this could be disruptive to our own sales effort. It can be very difficult to sign up top class country distributors unless we can commit to giving them a reasonable period of exclusivity.”
The Aorfix™ AAA stent graft is designed to minimally invasively treat abdominal aortic aneurysms. The US market for AAA stent grafts is forecast to reach over $0.5 billion by 2008 and it is anticipated the worldwide market will be over $1 billion by 2010. This growth will be stimulated as a result of increasing use of stent grafts and legislation for one-time ultrasound screening for AAAs which will commence in the USA in early 2007. Similar legislation is planned for the UK and other markets.
Lombard’s Aorfix™ is approved for sale in Europe and is currently in US clinical trials. FDA approval for Aorfix™ is expected in 2009.
Enquiries:
Lombard Medical Technologies PLC Tel: 01235 750 800
Alistair Taylor, Executive Chairman
Brian Howlett, Chief Executive Officer
Tim Hall, Finance Director
Financial Dynamics Tel: 020 7831 3113
David Yates / John Gilbert
Notes to editors
About Lombard Medical
Lombard Medical Technologies PLC is a medical devices group developing stent grafts and other medical products for use in the treatment of vascular disease. The Company’s lead product, Aorfix™, is a stent graft for the treatment of aortic aneurysms, a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Abdominal and thoracic aortic aneurysms are the 13th largest cause of death in the US and the market is estimated to be worth approximately US$2 billion by 2010. Aorfix™ is currently being commercialised in the EU, with US clinical trials having commenced during 2006. The Company’s Polymer Coatings Division primarily develops polymer coatings for use in drug eluting stents and has a number of research collaborations developing novel products for this $6bn market.
Lombard Medical has recently successfully completed its initial public offering on AIM and was admitted to listing in December 2005, raising £23.9 million, net of expenses. The Company, based in Oxfordshire & Yorkshire, currently employs 82 people.
Further background on the Company can be found at www.lombardmedical.com.