Lombard Medical Announces Strategic Collaboration for its Refix™ Endostapler
London, UK, 14 December 2006
Lombard Medical Technologies PLC (“Lombard Medical”) today announces a strategic collaboration with the leading US medical technology company, Medtronic Inc. (“Medtronic”), for Lombard Medical’s Refix™ Endostapler (“Refix™”). Endostaplers are used to provide increased fixation of stent grafts which treat abdominal and thoracic aortic aneurysms, a balloon-like weakness in the artery wall.
This strategic collaboration includes a distribution agreement whereby Medtronic has obtained the right to market Refix™ and will purchase Refix™ from Lombard Medical at an agreed transfer price. Medtronic intends to market Refix™ under the trade name Securant. Lombard Medical expects to complete the first clinical cases, following which Medtronic will initiate a controlled launch of the product.
The collaboration also includes a license agreement that allows Medtronic to use Lombard Medical’s Refix™ technology to develop “next generation” products in the field of cardiovascular disease. Medtronic’s rights under this license agreement will commence provided that Medtronic elects to pay Lombard Medical a US$3 million licence fee following Refix’s™ approval by the FDA. Royalties up to a maximum of US$5 million will also be payable by Medtronic to Lombard Medical on sales under the license agreement. In addition, Medtronic will make available to Lombard Medical a loan facility of US$3 million.
Lombard Medical has retained co-distribution rights relating to the use of Refix™ with its own thoracic stent graft and has also retained exclusive rights in the large potential market for the endovascular fixation of percutaneous heart valves as well as potential applications in urinary and gastrointestinal surgery. In addition, Lombard Medical has secured a licence to Medtronic’s Jervis/Raychem patent family in the endostapler field. These patents relate to the use of nitinol in medical devices.
Lombard Medical’s Refix™ Endostapler is a device for the percutaneous delivery of tiny fasteners (staples), which are pushed through both the wall of the stent graft as well as the wall of the aorta, to keep the stent graft firmly in place. Endovascular stent grafts provide vascular surgeons and interventional radiologists with a minimally invasive way to treat aneurysms. The stent graft re-routes the flow of blood into the aneurysm, thus avoiding the potential rupture of the balloon-like weakness, which could otherwise have fatal results.
Alistair Taylor, Executive Chairman of Lombard Medical, said:
“We are very pleased to enter into this strategic collaboration with Medtronic in the field of endovascular stapling. Medtronic is a world leader in the commercialisation of stent grafts for the treatment of aortic aneurysms and we look forward to the growth of Refix™ sales through Medtronic’s worldwide distribution channels. We also look forward to working with Medtronic to develop fixation devices for the next generation of aneurysm stent grafts.”
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 and Boston, USA, employs over 90 people.
Further background on the Company can be found at www.lombardmedical.com.