Edwards Lifesciences Sells TMR Heart Laser Distribution Rights to Novadaq Technologies, Inc.
The sale of the TMR distribution rights supports Edwards' strategy to focus on proprietary, physician-preference products. "Edwards remains committed to expanding our line of innovative specialty products for our cardiac surgeon partners," said Michael A. Mussallem, Edwards' chairman and CEO. "We are sharpening our focus on unique and less invasive technologies that advance the field of cardiac surgery."
Total consideration for this sale is estimated to be between $8-9 million, which includes the purchase of inventory valued at approximately $1.4 million and an earn-out based on 2007 sales. This transaction will result in a slight gain in the first quarter and Edwards will record income from the earn-out during the remainder of 2007. The company does not expect this transaction to have a material impact on its 2007 earnings guidance.
Sales of this product were approximately $12 million in 2006. As a result of this transaction, the Cardiac Surgery Systems product line, which includes Edwards Research Medical cannula and EMBOL-X technologies, is now expected to contribute revenues of $55-60 million in 2007.
About Novadaq Technologies
Novadaq Technologies Inc. (TSX: NDQ - News) develops and commercializes medical imaging systems and real-time image guided therapies for use in the operating room. Novadaq's proprietary imaging platform can be used to visualize blood vessels, nerves and the lymphatic system during surgical procedures.
About Edwards Lifesciences
Edwards Lifesciences, a leader in advanced cardiovascular disease treatments, is the number-one heart valve company in the world and the global leader in acute hemodynamic monitoring. Headquartered in Irvine, Calif., Edwards focuses on specific cardiovascular opportunities including heart valve disease, peripheral vascular disease and critical care technologies. The company's global brands, which are sold in nearly 100 countries, include Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, LifeStent, PERIMOUNT Magna, and Swan-Ganz. Additional company information can be found at www.edwards.com.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements are detailed in the company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2006.
Edwards and FloTrac are trademarks of Edwards Lifesciences Corporation. Edwards Lifesciences, Carpentier-Edwards, Cosgrove-Edwards, EMBOL-X, Fogarty, PERIMOUNT Magna and Swan-Ganz are trademarks of Edwards Lifesciences Corporation and are registered in the United States Patent and Trademark Office. Lifestent is a trademark of Edwards Lifesciences AG and is registered in the United States Patent and Trademark Office.
Source: Edwards Lifesciences Corporation