Lombard Medical Announces the Acquisition of Culzean Medical Devices Limited
London, UK, 20 June 2007 - Lombard Medical Technologies PLC (“Lombard Medical”) announces the acquisition of Culzean Medical Devices Limited (“Culzean Medical”) based in Prestwick, Ayrshire.
Culzean Medical is an innovative and experienced medical fabric specialist providing contract development and manufacturing solutions to the medical device industry. Its expertise in medical fabrics will be of significant value to Lombard Medical in the development of the Company’s next generation of stent grafts and in ensuring consistent fabric quality in the Company’s Aorfix™ stent graft. Culzean Medical recorded revenues of £101,000 and a net loss of £77,563 in its financial statements for the 17-month period ended 31 December 2006. Culzean Medical had net liabilities of £55,322 at 31 December 2006.
The Company intends to use the clean room suites in Culzean Medical’s leased premises to manufacture product for development purposes. Culzean Medical already manufactures Lombard Medical’s thoracic stent graft for preclinical testing and it is proposed that it will also produce Aorfix™ stent grafts for use in the testing of manufacturing process improvements. This will permit the main facility at Didcot to focus on manufacturing for commercial and clinical requirements.
David Richmond, the CEO of Culzean Medical, will join Lombard Medical and add his considerable experience, not least in the area of medical fabrics, to the team developing manufacturing process improvements for Aorfix™.
The share capital of Culzean Medical has been purchased for a provisional consideration of £225,000 of which £75,000 was satisfied by the issue of 272,728 ordinary shares of 2p each in Lombard Medical and £150,000 through the issue of 5% Guaranteed Loan Notes 2008. The Loan Note consideration will be adjusted to the extent that the levels of net debt and working capital reported in the completion accounts differ from £130,000 and £50,232 respectively.
Application will be made for the 272,728 ordinary shares of 2p each being issued as consideration to be admitted to trading on the AIM market of the London Stock Exchange. It is expected that dealings will commence in these new ordinary shares at 8am on 26 June 2007. These shares rank pari passu with the existing issued ordinary share capital of the Company.
Alistair Taylor, Executive Chairman, said:
“The acquisition of Culzean Medical gives Lombard Medical an expertise in medical fabrics that is critically important for our manufacturing and development activities, as well as providing the necessary clean room development facilities that will enable the focus at the Company’s Didcot facility to be concentrated upon supplying US FDA clinical and European commercial requirements.”
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
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.
The Company, headquartered in Oxfordshire, with operations in Yorkshire and Boston, USA, employs over 90 people.
Further background on the Company can be found at www.lombardmedical.com.