Placing and Subscription to raise £6.1 million
London, UK, 9 January 2009 Lombard announces Placing and Subscription to raise £6.1 million and Offer to Qualifying Participants that may raise a further £2.2 million
The funds raised will be applied towards:
* Obtaining regulatory approval for a unique label claim for Aorfix™ in Europe, including patients with high-angle (up to 90°) neck aneurysms
* Maximising sales opportunities for Aorfix™ in Europe
* Completing patient recruitment for key US Aorfix™ trial, now anticipated in Q2 2009, and obtain FDA approval for US launch no later than Q1 2011
* Progressing discussions with industry leaders regarding commercialisation of Aorfix™ in the US
In conjunction with this fundraising the Company has revised its business strategy to:
* Restructure its cost base to focus all business activity around Aorfix™
* Reduce its 2009 cash burn to less than £6 million
In addition, the Company is pleased to announce that:
* 69% (111 patients out 160 required) have now been recruited in the US trial with 38 centres now authorised (8 in Q1 2008)
* A submission has been filed in Europe for widening of the Aorfix™ label claim to include highangle-neck aneurysms. Approval is anticipated in H1 2009
* Aorfix™ sales growth progresses, with over 700 patients now treated despite reduced promotional spend
Commenting on the fundraising, Simon Neathercoat, Chairman of Lombard, said:
“We are delighted to announce the raising of new funds today against a background of some of the most difficult capital market conditions ever seen. These funds will enable us to complete the recruitment of our US trial for our lead product, Aorfix™ and progress its commercialisation in Europe. The fact that we have been able to raise this money is testament both to the quality of the product and the extent of the business opportunity for Aorfix™.
We are grateful to both existing and new investors for their support. In particular two of our major shareholders Invesco Limited and Fidelity International Limited who will become 29% and 10% shareholders respectively. Also Craig Rennie, one of our Non-executive Directors, who will become a 14% shareholder and certain members of the Canadian medical community who together will become 14% shareholders. Finally, I should also like to thank all our employees for their support despite having to share some of the pain as we seek to reduce our costs and maximise the funds available for Aorfix™.”
Enquiries:
Lombard Medical Technologies PLC Tel: +44 (0) 1235 750 800
Simon Neathercoat, Non-executive Chairman
Brian Howlett, Chief Executive Officer
Tim Hall, Finance Director
Financial Dynamics Tel: +44 (0) 20 7831 3113
David Yates / Susan Quigley
Nomura Code Securities Limited Tel: +44 (0) 20 7776 1200
Juliet Thompson / Richard Potts
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 an endovascular stent graft for the treatment of abdominal aortic aneurysms (AAAs), a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Approximately 1.7 million people have AAAs in the US where it is the 13th largest cause of death.
The market for endovascular stent grafts for the treatment of AAA is currently worth over $600 million and is expected to grow to around a $1 billion by 2010. Aorfix™ is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company’s Polymer Coatings Division has developed a novel hydrophilic surface treatment to reduce friction on catheters called GlideMax™, which is available for licensing, and is using its polymer coating technology in a number of research collaborations developing novel products for the $5 billion drug-eluting stent market. The Company headquartered in Oxfordshire, with operations in Yorkshire, Ayrshire and Boston, USA.
Further background on the Company can be found at
www.lombardmedical.com.