, Oct. 2, 2012
/PRNewswire/ - Neovasc Inc. (TSXV: NVC) today announced
that it has amended its agreement with LeMaitre Vascular, Inc. (Nasdaq:
LMAT) to allow LeMaitre to exercise its option to purchase certain
specific rights to Neovasc's biological vascular surgical patch product
technology on an accelerated basis, at an agreed price of US $4.6
Under the terms of the original January 2009 agreement, LeMaitre
Vascular had the option to purchase rights to certain specific uses of
the technology from Neovasc on or after January 2, 2014, under a
predetermined price mechanism. The new amendment allows LeMaitre to
exercise its technology acquisition option 14 months early. LeMaitre
has agreed to complete customary due diligence, and upon successful
completion of this due diligence, the parties will close the
transaction on or before October 31, 2012. Under the terms of the
amended agreement, Neovasc will receive US $4.255 million on closing,
with the balance payable one year later.
After the technology transfer, LeMaitre's right of use of the Neovasc
biological vascular surgical patch technology will be limited to the
manufacture of its XenoSure® surgical patch product line, which is currently manufactured by Neovasc
and distributed by LeMaitre. Neovasc will retain rights to all other
applications of its biological tissue technologies. In addition to and
concurrent with this amended agreement, the companies entered into a
new supply agreement under which Neovasc will continue to supply the
XenoSure product to LeMaitre while LeMaitre develops its own
manufacturing capacity and obtains required regulatory approvals.
"This amended agreement with LeMaitre for the early purchase of rights
to use our biological vascular surgical patch technology for
manufacturing the XenoSure product is a good deal for both companies,"
said Alexei Marko, CEO of Neovasc. "The $4.6 million in proceeds from
this transaction will enable us to continue aggressively advancing our
two promising pipeline projects, without the need for additional
financing in 2013. We look forward to presenting data on both our TiaraTM transcatheter mitral valve and our ReducerTM product for refractory angina at TCT 2012 later this month."
Mr. Marko continued, "The transfer of XenoSure patch manufacture to
LeMaitre will allow Neovasc to continue to increase the focus of our
biological products division on the supply of specialized tissue and
manufacturing services to the transcatheter heart valve industry and
other high margin applications. We anticipate that the capacity that is
freed up as we wind down our production for LeMaitre will be absorbed
by our increasing activities in these high growth areas, and we look
forward to continued revenue growth in 2013."
The XenoSure Biologic Vascular Patch distributed by LeMaitre is a high
quality bovine pericardium patch used for precision endarterectomy and
vascular reconstruction. Using the same tissue technology developed for
heart valves, the patch is exceptionally strong, uniform and easy to
handle and suture.
"We are pleased to have entered into this amended option agreement with
Neovasc," commented David Roberts, President of LeMaitre Vascular. "The
XenoSure product has been a very successful addition to the LeMaitre
product portfolio, and we welcome the opportunity to move its
About LeMaitre Vascular, Inc.
LeMaitre Vascular is a provider of devices and implants for the
treatment of peripheral vascular disease, a condition that affects more
than 20 million people worldwide. The Company develops, manufactures
and markets disposable and implantable vascular devices to address the
needs of its core customer, the vascular surgeon. The Company's
diversified product portfolio consists of brand name devices used in
arteries and veins outside of the heart, including the Over-the-Wire
LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt and The UnBalloon.
Additional information can be found at www.lemaitre.com.
About Neovasc Inc.
Neovasc Inc. is a specialty medical device company that develops,
manufactures and markets products for the rapidly growing
cardiovascular marketplace. Its products include the Neovasc Reducer
for the treatment of refractory angina, the Tiara technology in
development for the transcatheter treatment of mitral valve disease and
a line of advanced biological tissue products that are used as key
components in a variety of third-party medical products, such as
vascular surgical patches and transcatheter heart valves. For more
information, visit: www.neovasc.com.
Statements contained herein that are not based on historical or current
fact, including without limitation statements containing the words
"anticipates," "believes," "may," "continues," "estimates," "expects,"
and "will" and words of similar import, constitute "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward looking statements involve
known and unknown risks, uncertainties and other factors that may cause
the actual results, events or developments to be materially different
from any future results, events or developments expressed or implied by
such forward-looking statements. Such factors include, among others,
the following: general economic and business conditions, both
nationally and in the regions in which the Company operates; history of
losses and lack of and uncertainty of revenues, ability to obtain
required financing, receipt of regulatory approval of product
candidates, ability to properly integrate newly acquired businesses,
technology changes; competition; changes in business strategy or
development plans; the ability to attract and retain qualified
personnel; existing governmental regulations and changes in, or the
failure to comply with, governmental regulations; liability and other
claims asserted against the Company; and other factors referenced in
the Company's filings with Canadian securities regulators. Although the
Company believes that expectations conveyed by the forward-looking
statements are reasonable based on the information available to it on
the date such statements were made, no assurances can be given as to
the future results, approvals or achievements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. The Company does not assume the
obligation to update any forward-looking statements except as otherwise
required by applicable law.
SOURCE Neovasc Inc.